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Register now and save up to $200 Available with Beat the GMAT members only code ## OG Certain toy store's revenue in November This topic has 3 expert replies and 0 member replies AbeNeedsAnswers Master | Next Rank: 500 Posts Joined 02 Jul 2017 Posted: 191 messages Followed by: 2 members Upvotes: 1 #### OG Certain toy store's revenue in November Tue Jul 25, 2017 8:11 pm If a certain toy store's revenue in November was 2/5 of its revenue in December and its revenue in January was 1/4 of its revenue in November, then the store's revenue in December was how many times the average (arithmetic mean) of its revenues in November and January? (A) 1/4 (B) 1/2 (C) 2/3 (D) 2 (E) 4 E ### GMAT/MBA Expert Scott@TargetTestPrep GMAT Instructor Joined 25 Apr 2015 Posted: 790 messages Followed by: 3 members Upvotes: 43 Mon Aug 14, 2017 1:10 pm AbeNeedsAnswers wrote: If a certain toy store's revenue in November was 2/5 of its revenue in December and its revenue in January was 1/4 of its revenue in November, then the store's revenue in December was how many times the average (arithmetic mean) of its revenues in November and January? (A) 1/4 (B) 1/2 (C) 2/3 (D) 2 (E) 4 E We can let n = revenue in November, d = revenue in December, and j = revenue in January. We can create the following equations: n = (2/5)d j = (1/4)n So, j = (1/4)(2/5)d = (1/10)d We now determine that the average revenue for November and January is: [(2/5)d + (1/10)d]/2 [(4/10)d + (1/10)d]/2 (5/10)d/2 = (1/4)d Thus, the revenue in December is d/[(1/4)d] = 4 times the average revenue for November and January. Answer: E _________________ Scott Woodbury-Stewart Founder and CEO ### GMAT/MBA Expert Rich.C@EMPOWERgmat.com Elite Legendary Member Joined 23 Jun 2013 Posted: 9195 messages Followed by: 472 members Upvotes: 2867 GMAT Score: 800 Wed Jul 26, 2017 7:02 pm Hi AbeNeedsAnswers, This question can be solved by TESTing VALUES. We're told two facts about a toy store's revenue: 1) The revenue in November was 2/5 of the revenue in December. 2) The revenue in January was 1/4 of the revenue in November. We're asked to define how the revenue in December relates to the AVERAGE of the revenues in November and January. Let's TEST the common-denominator of those two fractions: 20 IF... December revenue =$20
November revenue = (2/5)($20) =$8
January revenue = (1/4)($8) =$2

The average of the November and January revenues is ($8+$2)/2 = $5. The December revenue ($20) is 4 times that average.

Final Answer: E

GMAT assassins aren't born, they're made,
Rich

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### GMAT/MBA Expert

Jay@ManhattanReview GMAT Instructor
Joined
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Posted:
976 messages
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20 members
Upvotes:
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Tue Jul 25, 2017 10:45 pm
AbeNeedsAnswers wrote:
If a certain toy store's revenue in November was 2/5 of its revenue in December and its revenue in January was 1/4 of its revenue in November, then the store's revenue in December was how many times the average (arithmetic mean) of its revenues in November and January?

(A) 1/4
(B) 1/2
(C) 2/3
(D) 2
(E) 4

E
Say the revenues in November, December and January are N, D, and J, respectively.

Thus, we have,

N = 2D/5;
J = N/4 = (2D/5)/4 = D/10

Say the revenue in December was x times the average (arithmetic mean) of its revenues in November and January.

Thus, D = x*(N + J)/2

D = x*(2D/5 + D/10)/2

D = Dx*(2/5 + 1/10)/2

2 = 5x/10; D cancells

x = 4.

The correct answer: E

Hope this helps!

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