A company sells two products, L and M. Last year, seventy

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BTGmoderatorLU: Moderator; Posts: 2505; Joined: Sun Oct 15, 2017 1:50 pm; Followed by:6 members

A company sells two products, L and M. Last year, seventy

by BTGmoderatorLU » Mon Oct 01, 2018 2:41 pm

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Source: GMAT Paper Tests

A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

The OA is E.

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Source: Beat The GMAT — Problem Solving | Mon Oct 01, 2018 2:41 pm

fskilnik@GMATH: GMAT Instructor; Posts: 1449; Joined: Sat Oct 09, 2010 2:16 pm; Thanked: 59 times; Followed by:33 members

by fskilnik@GMATH » Mon Oct 01, 2018 2:59 pm

BTGmoderatorLU wrote:Source: GMAT Paper Tests

A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

LetÂ´s explore a "double particular case", choosing a suitable number of (total) units and a suitable unitary price (for product M)!
\[10\,\,{\text{units}}\,\,\,\left\{ \begin{gathered}
\,7\,\,{\text{units}}\,\,L\,\,\,\, \to \,\,\,\$ 5\,\,{\text{each}} \hfill \\
\,3\,\,{\text{units}}\,\,M\,\,\,\, \to \,\,\,\$ 4\,\,{\text{each}} \hfill \\
\end{gathered} \right.\]
\[? = \frac{{7 \cdot 5}}{{7 \cdot 5 + 3 \cdot 4}} = \frac{{35}}{{47}} = \underleftrightarrow {\frac{{35 \cdot 2}}{{47 \cdot 2}} = \frac{{70}}{{94}}} > 70\% \,\,\, \Rightarrow \,\,\,\left( E \right)\]

This solution follows the notations and rationale taught in the GMATH method.

Regards,
Fabio.

Fabio Skilnik :: GMATH method creator ( Math for the GMAT)
English-speakers :: https://www.gmath.net
Portuguese-speakers :: https://www.gmath.com.br

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Wed Oct 03, 2018 4:41 pm

BTGmoderatorLU wrote:Source: GMAT Paper Tests

A company sells two products, L and M. Last year, seventy percent of the units sold were product L, and the price of product L was 25 percent greater than the price of product M. Approximately what percent of the total revenue the company received last year was from the sale of product L?

A. 15%
B. 25%
C. 35%
D. 65%
E. 74%

We can let the number of units of L and M sold last year be 7 and 3, respectively. We can also let the unit prices of L and M be $5 and $4, respectively. We see that the revenue from product L is 7 x 5 = $35 and the total revenue is 35 + 3 x 4 = 35 + 12 = $47. Therefore, the revenue from product L is 35/47 â‰ˆ 74% of the total revenue.

Alternate Solution:

If the prices of L and M were equal, then precisely 70% of the revenue would be from product L. Since the price of L is actually greater than price of M, more than 70% of the revenue will be from product L. The only answer choice greater than 70 is E.

Answer: E

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