In the month of August, Pentheus Corporation made $200,000 in profit. Pentheus made 6% of that profit on the second...

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Mon Jan 25, 2021 2:48 am

Magoosh

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

OA E

Solution:

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