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From 2005 to 2006, by what percent did the sales of Company

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From 2005 to 2006, by what percent did the sales of Company

by BTGmoderatorLU » Fri Jul 27, 2018 3:16 pm

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From 2005 to 2006, by what percent did the sales of Company A increase?

(1) In 2005, the sales for Company A were 1/4 of the sales of Company B.
(2) In 2006, the sales for Company A were 3/4 of the sales of Company B.

The OA is E.
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Source: — Data Sufficiency |
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by deloitte247 » Sat Sep 01, 2018 10:47 am

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% increase in Company A sales.
Let the 2005 sales for company A= X
Let the 2006 sales for company A= Y
$$\frac{y-x}{x}\cdot\frac{100}{1}=\%\ increase$$

Statement 1: In 2005, the sales for company A were 1/4 of the sales of company B.
Let sale of company A in 2005 = xA
Let sale of company B in 2015 = xB
$$Therefore,\ xA=\frac{1}{4}\cdot xB$$
This does not provide us with enable information on the sales for company B in 2005. Hence, Statement ! is INSUFFICIENT.

Statement 2: In 2006, the sales for company A were 3/4 of the sales for company B in 2006. Hence, statement 2 is INSUFFICIENT.
Combining statement 1 and 2 together.
$$Statement\ 1=\ xA=\frac{1}{4}\cdot xB$$
$$Statement\ 2=\ xa=\frac{3}{4}\cdot xb$$
Rewriting the equation, we have
$$\frac{\left(0.75\cdot xb\right)-\left(0.25\cdot xb\right)}{\left(0.25\cdot xb\right)}$$
No information on the values of sales for company B in 2005 and 2016. hence the two statement combined together are INSUFFICIENT
Answer is Option E
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