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Company X has exactly two product lines and no other sources of revenue. If the consumer product line...

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by BTGmoderatorLU » Sat Nov 21, 2020 4:57 am

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Source: Manhattan Prep

Company X has exactly two product lines and no other sources of revenue. If the consumer product 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

The OA is A
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Source: — Data Sufficiency |
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Re: Company X has exactly two product lines and no other sources of revenue. If the consumer product line...

by deloitte247 » Thu Nov 26, 2020 12:52 am
Consumer product line experiences a k% increase in revenue machine parts line experiences a k% decrease in revenue

Target question => Did company x's overall revenue increase or decrease in 2015? i.e is consumer product line revenue < machine parts line revenue?

Statement 1 => In 2014 the consumer products line generated more revenue than the machine parts line
This means consumer products line is > machine parts line so statement 1 IS SUFFICIENT

Statement 2 => k = 8
This means the consumer product line experience 8% increase on revenue and machine parts line experience 8% decrease on revenue but since overall revenue is unknown exact increase and decrease in revenue cannot be evaluated so statement 2 is NOT SUFFICIENT

Since only statement 1 is SUFFICIENT, answer = A
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