Company z only sells chairs and tables. What percent of its revenue in 2008 did company z derive from its sales of tables?
S1.) In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by company z.
S2.) In 2008, Company z sold 20% fewer tables then chairs..
Can somebody give a simple explanation to this problem. Manhattan Gmat asks us to use the mixture problem approach as there are 2 components of company z.But i am not able 2 feel comfortable with the solution they have provided!
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nidhis.1408
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Say, number of chairs = C and number of tables = Tnidhis.1408 wrote:Company z only sells chairs and tables. What percent of its revenue in 2008 did company z derive from its sales of tables?
S1.) In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by company z.
S2.) In 2008, Company z sold 20% fewer tables then chairs.
And, average price of a chair = x and that of a table = y
Required percentage = 100*(Revenue from sales of tables)/(Total revenue) = 100*(Ty)/(Cx + Ty)
Statement 1: y = (x + 10% of x) = (1.1)*x
Not sufficient
Statement 2: T = (C - 20% of C) = (0.8)*C
Not sufficient
1 & 2 Together: Ty = (1.1)*(0.8)*(Cx) = (0.88)*Cx
Hence, required percentage = 100*(0.88)*Cx/((0.88)*Cx + Cx) = 100*(0.88)/(1.88)
Sufficient
The correct answer is C.
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Statement 1: In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by company.nidhis.1408 wrote:Company z only sells chairs and tables. What percent of its revenue in 2008 did company z derive from its sales of tables?
S1.) In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by company z.
S2.) In 2008, Company z sold 20% fewer tables then chairs.
Can somebody give a simple explanation to this problem. Manhattan Gmat asks us to use the mixture problem approach as there are 2 components of company z.But i am not able 2 feel comfortable with the solution they have provided!
No information about the ratio of the number of tables sold to the number of chairs sold.
INSUFFICIENT.
Statement 2: In 2008, Company Z sold 20% fewer tables then chairs:
No information about the ratio of the selling price of the tables to the selling price of the chairs.
INSUFFICIENT.
Statements 1 and 2 combined:
Plug in two different combinations that satisfy both statements.
If (table revenue)/(total revenue) is the same in each case, then the two statements combined are sufficient.
If (table revenue)/(total revenue) changes, then the two statements combined are insufficient.
Case 1:
Chair price = 10, table price = 11.
Number of chairs sold = 10, number of tables sold = 8.
Table revenue/total revenue = (11*8)/(10*10 + 11*8) = 88/188.
Case 2:
Chair price = 20, table price = 22.
Number of chairs sold = 100, number of tables sold = 80.
Table revenue/total revenue = (22*80)/(20*100 + 22*80) =176/376 = 88/188.
Since the ratio in each case is the same, the two statements combined are SUFFICIENT.
The correct answer is C.
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I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
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For more information, please email me (Mitch Hunt) at [email protected].
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