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OA: D
Different Price Levels - Ratio problem (sort of)
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- sunnyjohn
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Revence of Company = 100$
175-------------------------------75
----------------125----------------- <=== if equal contribution
-----------------------100--------75 <=== current situation
so its clear the they have more corporate customers than small businesses.
175--------------------100-----------75
75 25
so ratio of contribution : 1:3
So,
if total revenue is 400x then corporation are contributing 75*3X
so % will be : 225x/400x ==> 9/16 ==>56.25% answer.
175-------------------------------75
----------------125----------------- <=== if equal contribution
-----------------------100--------75 <=== current situation
so its clear the they have more corporate customers than small businesses.
175--------------------100-----------75
75 25
so ratio of contribution : 1:3
So,
if total revenue is 400x then corporation are contributing 75*3X
so % will be : 225x/400x ==> 9/16 ==>56.25% answer.
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75 175
equilibrium point is: 100
whats the distance between 75 and 100 = 25
whats the distance between 100 and 175 = 75
75% of 75 and 25 % of 175 is the answer.
3 of 75 and 1 of 175
225/(400) is the answer
equilibrium point is: 100
whats the distance between 75 and 100 = 25
whats the distance between 100 and 175 = 75
75% of 75 and 25 % of 175 is the answer.
3 of 75 and 1 of 175
225/(400) is the answer