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by nidhis.1408 » Wed Nov 16, 2011 12:42 pm
In 1992 a clothing company sold its jeans to retailers for a fixed price per pair. In 1993 the number of pairs the company sold to retailers increased by 30 percent, while the price per pair increased by 15 percent. If the company's gross revenue from the sale of jeans in 1992 was $10 million, what was its approximate revenue from the sale of jeans in 1993?

a.$11.5 million
b.$12.5 million
c.$13.0 million
d.$14.5 million
e.$15.0 million
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by neelgandham » Wed Nov 16, 2011 12:56 pm
Let the cost of a pair of jeans in 1992 be J
Let the number of pairs of jeans sold in 1992 be N
company's gross revenue from the sale of jeans in 1992 = N*J = $10 million

The cost of a pair of jeans in 1993 is 1.3*J
The number of pairs of jeans sold in 1992 be 1.15*N
company's gross revenue from the sale of jeans in 1993 = 1.3*1.15*N*J = 1.3*1.15*$10 million = 14.9X million ~ 15 million

Option E
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by shankar.ashwin » Wed Nov 16, 2011 1:02 pm
Cost * Number of pieces = 10 million (1992)

1.3 COst * 1.15 Number of pieces = 1.495 * (10 Million) = 14.95 - (In 1993)

E
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