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In 1999

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by bstalling » Sun Mar 01, 2009 6:31 pm
In 1999, Company X's gross profit was what percent of its revenue?

1) In 1999 Company X's gross profit was 1/3 of its expenses
2) In 1999 Company X's expenses were 3/4 of its revenue

gprep OA - D
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Source: — Data Sufficiency |

by cramya » Sun Mar 01, 2009 7:44 pm
Revenue - Expenses = Gross Profit

R - E = G

Stmt I

In 1999 Company X's gross profit was 1/3 of its expenses

1/3E = G

E=3G

R - E = 1/3E

We can get to Company X's gross profit was what percent of its revenue from here SO SUFF

No need to solve but just for the records:

R = 4/3E

R = 4/3*3G

R = 4G

G = 1/4R = 25%



Stmt II

In 1999 Company X's expenses were 3/4 of its revenue

R - E = G

R - 3/4R = G

We can get to the relationship between R and G and hence the %.

SUFF


If we were to solve (not needed since its a DS)

R(1-3/4) = G

1/4*R = G

Choose D
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