Problem Solving

Q11:
A certain company that sells only cars and trucks reported that revenues from car sales in
1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7
percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1
4
percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from
truck sales in 1996?
A. 1 : 2
B. 4 : 5
C. 1 : 1
D. 3 : 2
E. 5 : 3
Answer:
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1996 PRICE 1997 PRICE
CAR X .89X
TRUCK Y 1.07Y

x+y+.01(x+y) = .89x+1.07y step 1
[(Total Reveneue in 1996 + 1% of it = Total Revenue in1997
1% is what I represented as .01 (x+y)
x+y is to the total revenue in 1996
.89x(down 11% car) + 1.07 (truck up by 7 %) is revenue in 1997) ]

1.01x+1.01y = .89x+1.07y step 2
.12x = .06y step 3
x/y = .06/.12 step 4
x/y = 1/2
A)

Formatting dint come out right in last post


1996 CAR PRICE - x
1996 TRUCK PRICE - y
1997 CAR PRICE - .89x
1997 TRUCK PRICE - 1.07y



x+y+.01(x+y) = .89x+1.07y step 1
[(Total Reveneue in 1996 + 1% of it = Total Revenue in1997
1% is what I represented as .01 (x+y)
x+y is to the total revenue in 1996
.89x(down 11% car) + 1.07 (truck up by 7 %) is revenue in 1997) ]
1.01x+1.01y = .89x+1.07y step 2
.12x = .06y step 3
x/y = .06/.12 step 4
x/y = 1/2
A)

me too getting 1/2
Let,
1997: revenue from car=x, rev from truck =y
1996: car rev. was 11% more=1.11x; truck rev was 7% lower =0.93y
now total rev 1996 = 1.11x+0.93y........(1)
total rev 1997 = x+y...........................(2)
We have 1% total increase in rev fro 1996 to 1997 , therefore
1%increase of (1.11x+0.93y) = x+y
12.1x=6.07y
x/y=1/2

i get your reasoning but im not sure where the 1% comes into play, can someone explain that please?

Realxin,
The problem says 1997 revenue was up 1% from 1996 revenue.
This is where the i% comes from.

Let me know if you need further clarification