gmattesttaker2 wrote:Hello,
Can you please help with this:
Company Z only sells chairs and tables. What percent of its revenue in 2008 did Company Z derive from its sales of tables?
1) In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by Company Z
2) In 2008, Company Z sold 20% fewer tables than chairs
Statement 1: In 2008, the average price of tables sold by Company Z was 10% higher than the average price of chairs sold by Company Z
Test one case that also satisfies statement 2.
Case 1:
Price per chair = $10, number of chairs sold = 10, yielding $100 in revenue.
Price per table = $11, number of tables sold = 8, yielding $88 in revenue.
In this case, (table revenue)/(total revenue) = 88/188.
Test one case that doesn't satisfy statement 2.
Case 2:
Price per chair = $10, number of chairs sold = 100, yielding $1000 in revenue.
Price per table = $11, number of tables sold = 8, yielding $88 in revenue.
In this case, (table revenue)/(total revenue) = 88/1088.
Since (table revenue)/(total revenue) can be different values, INSUFFICIENT.
Statement 2: In 2008, Company Z sold 20% fewer tables than chairs
Case 1 also satisfies statement 2.
In Case 1, (table revenue)/(total revenue) = 88/188.
Test one case that satisfies statement 2 but doesn't satisfy statement 1.
Case 3:
Price per chair = $1, number of chairs sold = 10, yielding $10 in revenue.
Price per table = $2, number of tables sold = 8, yielding $16 in revenue.
In this case, (table revenue)/(total revenue) = 16/26.
Since (table revenue)/(total revenue) can be different values, INSUFFICIENT.
Statements combined:
Case 1 satisfies both statements.
In Case 1, (table revenue)/(total revenue) = 88/188.
Test one more case that satisfies both statements.
Case 4:
Price per chair = $20, number of chairs sold = 100, yielding $2000 in revenue.
Price per table = $22, number of tables sold = 80, yielding $1760 in revenue.
In this case, (table revenue)/(total revenue) = 1760/3760 = 176/376 = 88/188.
Since (table revenue)/(total revenue) is the same value in each case, SUFFICIENT.
The correct answer is
C.
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