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In the month of August, Pentheus Corporation made $200,000..

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In the month of August, Pentheus Corporation made $200,000..

by BTGmoderatorLU » Thu Jan 11, 2018 7:32 am
In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus's revenue on the second Wednesday of August?

A. $65,536
B. $75,025
C. $77, 922
D. $80,000
E. $82,756

The OA E.

I'm really confused with this PS question. Experts, any suggestion about the solution? Thanks in advance.
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by GMATWisdom » Thu Jan 11, 2018 8:42 am
LUANDATO wrote:In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus's revenue on the second Wednesday of August?

A. $65,536
B. $75,025
C. $77, 922
D. $80,000
E. $82,756

The OA E.

I'm really confused with this PS question. Experts, any suggestion about the solution? Thanks in advance.
6% of 200000=12000
Against 14.5 profit the revenue is= 100
Against 12000 profit the revenue is=100*12000/14.5=1200000/14.5
A rough value of this fraction you may get using the table of 15 which
indicates that the value should be more than 80000,
hence option E
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by DavidG@VeritasPrep » Thu Jan 11, 2018 10:14 am
LUANDATO wrote:In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus's revenue on the second Wednesday of August?

A. $65,536
B. $75,025
C. $77, 922
D. $80,000
E. $82,756

The OA E.

I'm really confused with this PS question. Experts, any suggestion about the solution? Thanks in advance.
First, 6% of 200,000 is 12,000, so that's the profit earned on the second Wed of August.

We're told that this value is 14.5% of the revenue for the day. Meaning that 12,000/Revenue = 14.5%. So when 12,000 is divided by the correct answer, we should get 14.5%.

Clearly, you'd want to test D here if you're back-solving.12,000/80,000 = 12/80 = 3/20 = 15%. But we want 14.5% - a smaller value than 15%. - so the denominator must be larger. The correct answer is E
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by Scott@TargetTestPrep » Thu Jan 18, 2018 7:57 am
LUANDATO wrote:In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second Wednesday of August. If the profits that day were approximately 14.5% of the revenue for that day, then what was Pentheus's revenue on the second Wednesday of August?

A. $65,536
B. $75,025
C. $77, 922
D. $80,000
E. $82,756
On the second Wednesday of August, the profit made was 0.06 x 200,000 = 12,000.

Since 12,000 was approximately 14.5% of the revenue for that day, we have:

12,000 = 0.145(revenue)

12,000/0.145 = revenue

Since we can estimate, we see that 12,000/0.15 = 80,000; however, since we are dividing by 0.145, which is a SMALLER NUMBER, we see that our answer must be a bit larger than 80,000, and the only answer that fits is E, 82,756.

Answer: E

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by DrMaths » Thu Jan 18, 2018 8:34 am
P = 0.06 * 200,000 = 12,000

and 12,000 = 0.145 * R

So R = 12,000/0.145 = 12,000,000/145 = 2,400,000/29 (simplified by dividing by 5)

Ignoring the order of magnitude or units:

240/29 > 240/30 = 8
So 240/29 > 8

Only Answer E > 8
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