Ogel Limited sells toys and books only. Its revenues from toy sales in \(2015\) were up \(12\%\) from \(2014\) and reven

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Thu Nov 05, 2020 8:28 am

Ogel Limited sells toys and books only. Its revenues from toy sales in \(2015\) were up \(12\%\) from \(2014\) and revenues from books sales in \(2015\) were down by \(17\%\) from \(2014.\) If the total revenues from toy sales and book sales in \(2015\) were down by \(2\%\) from \(2014,\) what is the ratio of revenue from toy sales in \(2014\) to revenue from book sales in \(2014?\)

A. \(2:17\)
B. \(12:17\)
C. \(9:11\)
D. \(13:14\)
E. \(15:14\)

Answer: E

Solution:

We can use the following fact:

If the overall percent change of the two groups, group A and group B, combined, is m, and group A has a percent change of a (where a < m) and group B has a percent change of b (where b > m), then the ratio of group B to group A is (m - a) / (b - m).

Using the fact above (by letting the revenue from toys be group B and the revenue from books be group A), we have (notice that here, m = -2, b = 12, a = -17):

revenue of toys/revenue of books = (-2 - (-17)) / (12 - (-2)) = 15/14.

Answer: E