selango wrote:Current month revenue
------------------------------------
Let the price be 5
Revenue=220*5=1100
This month revenue is 10% greater than last month.
Last month revenue=1000
Current month revenue after increasing the price
-----------------------------------------------------
Price is raised by 5%.So the new price is 5+5/100*5=5.25
Revenue=200*5.25=1050
Current month revenue=1050
Last month revenue=1000
1000[1+a/100]=1050
Solving we get a=5(ie) last month revenue is 5% less than current month revenue
Pick B
Careful! You calculated the
percent increase from 1000 to 1050: 1050 is 5%
more than 1000. We need the
percent decrease from 1050 to 1000. Using your numbers:
Current revenue = 1050
Last month's revenue = 1000
Percent decrease = Difference/Larger * 100 = 50/1050 * 100 = 100/21.
1000 is (100/21)%
less than 1050.
The correct answer is C.
We could plug in any number for the ticket price. I chose $20 in order to avoid decimals:
This month's revenue = 220 * 20 = 4400
4400 is 10% more than 4000, so last month's revenue = 4000
Raised ticket price = 20 + (5/100 * 20) = 21
Revenue if only 200 tickets sold = 200*21 = 4200
% decrease = difference/larger * 100 = (200)/4200 * 100 = 200/42 = 100/21
The correct answer is C.
Last edited by GMATGuruNY on Tue Sep 14, 2010 9:20 am, edited 1 time in total.
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