• 7 CATs FREE!
If you earn 100 Forum Points

Engage in the Beat The GMAT forums to earn
100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A certain company that sells only cars and trucks reported tagged by: AAPL ##### This topic has 1 expert reply and 1 member reply ### Top Member ## A certain company that sells only cars and trucks reported ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Official Guide A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996? A. 1:2 B. 4:5 C. 1:1 D. 3:2 E. 5:3 OA A ### GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 9944 messages Followed by: 493 members Upvotes: 2867 GMAT Score: 800 Hi All, We're told that a certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and trucks sales in 1997 were up 1 percent from 1996, what is the RATIO of revenue from CAR sales in 1996 to revenue from TRUCK sales in 1996? This prompt does NOT give us any information about the actual revenues for car sales or truck sales in 1996, so we'll end up using a mix of TESTing VALUES and TESTing THE ANSWERS in a moment. Based on the information in the prompt, if those two revenue values from 1996 were EQUAL though, then we can run a quick calculation on what the results would have been in 1997. IF in 1996.... Car revenue =$100
Truck Revenue = $100 Total Revenue =$200

then the revenue in 1997 would have been...
Car revenue = 11% drop = $89 Truck Revenue = 7% gain =$107
Total revenue = $196 This is a 2% DROP from the year before, but the prompt states that it's supposed to be a 1% GAIN. To 'offset' the 11% drop in car revenue, we clearly need there to be a LARGER amount of Truck revenue. So the ratio of car revenue to truck revenue must be SMALLER than 1:1 (e.g. 1:2, 2:3, 2:5 4:7, etc.). Thus, the correct answer is either A or B. Let's TEST Answer A: IF in 1996.... Car revenue =$100
Truck Revenue = $200 Total Revenue =$300

then the revenue in 1997 would have been...
Car revenue = 11% drop = $89 Truck Revenue = 7% gain =$214
Total revenue = $303 This is a 1% gain from the year before - and this matches what we were told, so this MUST be the answer. Final Answer: A GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com ### Top Member Junior | Next Rank: 30 Posts Joined 04 Dec 2018 Posted: 10 messages Let the revenue from cars in 1996 be c and revenue from trucks in 1996 be t Total revenue in 1997 would be 0.89c+1.07t Also as total revenue in 1997 were up 1 percent from 1996, then total revenue in 1997 would be 1.01(c+t) Now this becomes a weighted average question. We can solve it be allegation. 0.89 1.07 1.01 6 12 Hence the ratio then becomes 1:2 Hence the answer is 1:2. • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

Available with Beat the GMAT members only code

• 1 Hour Free
BEAT THE GMAT EXCLUSIVE

Available with Beat the GMAT members only code

• FREE GMAT Exam
Know how you'd score today for \$0

Available with Beat the GMAT members only code

• Free Practice Test & Review
How would you score if you took the GMAT

Available with Beat the GMAT members only code

### Top First Responders*

1 Brent@GMATPrepNow 67 first replies
2 fskilnik@GMATH 59 first replies
3 Jay@ManhattanReview 46 first replies
4 GMATGuruNY 32 first replies
5 Rich.C@EMPOWERgma... 26 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

### Most Active Experts

1 fskilnik@GMATH

GMATH Teacher

126 posts
2 Brent@GMATPrepNow

GMAT Prep Now Teacher

102 posts
3 Max@Math Revolution

Math Revolution

93 posts
4 Jay@ManhattanReview

Manhattan Review

85 posts
5 Rich.C@EMPOWERgma...

EMPOWERgmat

69 posts
See More Top Beat The GMAT Experts