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tagged by: AAPL

# Forum: If the circus were to sell all of its 220 tickets for this..

If the circus were to sell all its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month.If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue?

A. 2
B. 5
C. 100/21
D. 110/20
E. 9/4

The OA is C.

I'm not sure what the question is asking:

"what percent less would last month's revenue be compared to this month's revenue?"

The way I interpreted the question was "last month's revenue is less than this month's revenue by how many percent?"

I got 5%,

(this month)-(last month)] / (last month).

Can any experts help, please? Thanks!

### GMAT/MBA Expert

Senior | Next Rank: 100 Posts
Joined
16 Dec 2014
Posted:
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AAPL wrote:
If the circus were to sell all its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month.If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue?

A. 2
B. 5
C. 100/21
D. 110/20
E. 9/4

The OA is C.

I'm not sure what the question is asking:

"what percent less would last month's revenue be compared to this month's revenue?"

The way I interpreted the question was "last month's revenue is less than this month's revenue by how many percent?"

I got 5%,

(this month)-(last month)] / (last month).

Can any experts help, please? Thanks!
Situation 1 (220 tickets @ price P): Revenue = 220*P = 220P
We know that this is 10% higher than the revenue last month - therefore the revenue last month is 200P.

Situation 2 (200 tickets @ price 1.05P): = 200*1.05P = 210P

Question asks us to look at how much less last months revenue is vs Situation 2:
How much less is it? Well that's 210P - 200P = 10P

Answer = 10P/210P = 1/21, to get it into a % we need to * by 100. So the answer in percentage terms is 100/21.

### GMAT/MBA Expert

GMAT Instructor
Joined
09 Apr 2015
Posted:
1461 messages
Followed by:
16 members
39
AAPL wrote:
If the circus were to sell all its 220 tickets for this month's performance at its usual price, the revenue from sales would be 10% greater than that collected last month.If the circus raised the ticket price by 5% and sold only 200 tickets as a result, what percent less would last month's revenue be compared to this month's revenue?

A. 2
B. 5
C. 100/21
D. 110/20
E. 9/4
We can let p = the usual price per ticket and r = revenue last month

So the normal revenue would be 220p and we can create the equation:

220p = 1.1r

200p = r

When the ticket price is raised 5%, the revenue is 1.05p(200) = 210p.

So the percent change from last month would be (200p - 210p)/210p x 100 = -10/210 x 100 = -1000/210 = -100/21, which corresponds to a revenue that is 100/21 percent less than this month’s revenue.

_________________
Jeffrey Miller Head of GMAT Instruction

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