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Warehouse W's revenue from the sale of sofas was what percen

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Warehouse W's revenue from the sale of sofas was what percen  [#permalink]

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New post 19 Jun 2017, 18:42
Revenue = Sofas X Price

Revenue Change = [Revenue This Year / Revenue Last Year] - 1

For statement 1
R= Sofas Sold
P2 = Price Year 2
P1 = Price Year 1

For Statement 2
R2= Sofas Sold year 2
R1 Sofas Sold Year 1
P= Price

For Statement 3
R= Sofas Sold
P = Price
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Re: Warehouse W's revenue from the sale of sofas was what percen  [#permalink]

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New post 06 Jul 2017, 17:31
1
young_gun wrote:
Warehouse W's revenue from the sale of sofas was what percent greater this year than it was last year?

(1) Warehouse W sold 10% more sofas this year than it did last year
(2) Warehouse W's selling price per sofa was $30 greater this year than it was last year


We can begin by defining some variables.

a = quantity of sofas sold last year

b = price per sofa sold last year

c = quantity of sofas sold this year

d = price per sofa sold this year

We need to determine what percentage greater this year’s sofa revenue was than last year’s. To determine the percentage increase, we can use the percent change formula. Recalling that revenue = price x quantity, we see that the revenue from sofas sold last year is ab and the revenue from sofas sold this year is cd.

percent change = (new – old)/old x 100

(cd – ab)/ab x 100 = ?

(cd/ab – 1) x 100 = ?

100cd/ab – 100 = ?

Statement One Alone:

Warehouse W sold 10 percent more sofas this year than it did last year.

Using the information in statement one, we can create the following equation:

c = 1.1a

Without knowing the values of b and d, statement one is not sufficient to answer the question. We can eliminate answer choices A and D.

Statement Two Alone:

Warehouse W’s selling price per sofa was $30 greater this year than it was last year.

Using the information in statement two, we can create the following equation:

d = 30 + b

Without knowing the values of a and c, statement two is not sufficient to answer the question. We can eliminate answer choice B.

Statements One and Two Together:

Using statements one and two together, we still do not have enough information to answer the question. Even if we substitute 1.1a for c and 30 + b for d in the expression 100cd/ab – 100, we are left with:

100(1.1a)(30 + b)/ab – 100

110a(30 + b)/ab – 100

110(30 + b)/b – 100

Since we don’t know the value of b, we can’t determine a unique value for the expression.

Answer: E
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Re: Warehouse W's revenue from the sale of sofas was what percen  [#permalink]

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New post 11 Aug 2018, 22:09
Instead of #2 indicating an increase of $30, what if it said 30% increase in price. Would the answer be C then?
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Re: Warehouse W's revenue from the sale of sofas was what percen  [#permalink]

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New post 04 Dec 2018, 16:59
A detailed explanation can be found in this video:
https://www.youtube.com/watch?v=m0Yikz6zL1c&t=2s

You need to know two formulas to answer this question:

Revenue = (price per unit)*(#of units sold), or R = P*U

Percent change = (new number – old number) / (old number)

In order to answer this question, we would need to know percent increase in units and percent change in price

(1) Tells us percent change in units, but not in price. Insufficient.
(2) Does not even tell us percent change in price. Insufficient.

Even in combination, the two statements fail to tell us percent change in both units and price.

Answer E
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Re: Warehouse W's revenue from the sale of sofas was what percen &nbs [#permalink] 04 Dec 2018, 16:59

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