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

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

Post Mon Mar 05, 2018 5:04 am
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!

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Post Mon Mar 05, 2018 5:28 am
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.

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Post Tue Mar 06, 2018 10:46 am
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.

Answer: C

_________________
Jeffrey Miller Head of GMAT Instruction

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