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Company X has exactly two product lines and no other sources

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by AAPL » Thu Nov 22, 2018 3:01 am

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Answers

A

B

C

D

E

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Difficulty—

Manhattan Prep

Company X has exactly two product lines and no other sources of revenue. If the consumer products line experiences a k% increase in revenue (where k is a positive integer) in 2015 from 2014 levels and the machine parts line experiences a k% decrease in revenue in 2015 from 2014 levels, did Company X's overall revenue increase or decrease in 2015?

1) In 2014, the consumer products line generated more revenue than the machine parts line.
2) k = 8

OA A.
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Source: — Data Sufficiency |

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by Jay@ManhattanReview » Thu Nov 22, 2018 11:50 pm
AAPL wrote:Manhattan Prep

Company X has exactly two product lines and no other sources of revenue. If the consumer products line experiences a k% increase in revenue (where k is a positive integer) in 2015 from 2014 levels and the machine parts line experiences a k% decrease in revenue in 2015 from 2014 levels, did Company X's overall revenue increase or decrease in 2015?

1) In 2014, the consumer products line generated more revenue than the machine parts line.
2) k = 8

OA A.
Say consumer product line revenue = $x and machine parts line revenue = $y

Thus, increase or decrease in revenue = k% of x - k% of y = k% of (x - y)

If x > y or x < y, the answer is Yes.
If x = y, the answer is No.

Question rephrase: Is x = y?

Let's take each statement one by one.

1) In 2014, the consumer products line generated more revenue than the machine parts line.

=> x > y => x ≠ y. The answer is Yes. Sufficient.

2) k = 8

Can't compared x and y. Insufficient.

The correct answer: A

Hope this helps!

-Jay
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by deloitte247 » Sat Nov 24, 2018 11:12 am
$$let\ consumer\ product\ line\ =C$$
$$let\ machine\ product\ line\ =m$$
from 2014 to 2015 ; c experienced a k% increase while m experienced a k% decrease.
Overall revenue=(revenue from c) + (revenue from m )

Statement 1
In 2014, the consumer product line generated more revenue than machine part line
c>m in 2014 hence (k% of c) increase in 2015 will be greater than (k% of m) decrease in 2015
Thus, it is certain than the overall revenue in 2015 is more than that of 2014.
$$statement\ \ 1\ \ is\ SUFFICIENT$$

Statement 2
k=8
8% increase in (c) will be experienced in 2015 and 8% decrease in (m) will also be experienced in 2015 the value of (k=8) is irrelevant without knowing the value of other revenue of (m) , Hence
$$statement\ 2\ is\ INSUFFICIENT$$
statement 1 alone is SUFFICIENT
$$answer\ is\ option\ A$$
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