Marketing executives for a certain chewing gum company projected a 20 percent increase in revenue this year over that of last year, but revenue this year actually decreased by 25%. What percent of the projected revenue was the actual revenue ?
A)53%
B)58%
c)62.5%
D)64%
E)75%
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Percentage problem -1
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GMATGuruNY
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Let last year's revenue = 100.guerrero wrote:Marketing executives for a certain chewing gum company projected a 20 percent increase in revenue this year over that of last year, but revenue this year actually decreased by 25%. What percent of the projected revenue was the actual revenue ?
A)53%
B)58%
c)62.5%
D)64%
E)75%
Since a 20% increase was projected, the projected revenue = 100 + .2(100) = 120.
Since the actual revenue decreased by 25%, the actual revenue = 100 - .25(100) = 75.
Thus, actual revenue/projected revenue = 75/120 = 5/8 = 62.5%.
The correct answer is C.
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let the revenue for last year is 'x'
projected revenue is x + .2x
actual revenue is x - .25x
the projected revenue was the actual revenue = actual revenue/projected revenue is x + .2x
= x - .25x / x + .2x
= x (1-.25) / x(1+.2)
= 1-.25 / 1+.2
= .75 / 1.2
= .625
in % it would come 62.5%
projected revenue is x + .2x
actual revenue is x - .25x
the projected revenue was the actual revenue = actual revenue/projected revenue is x + .2x
= x - .25x / x + .2x
= x (1-.25) / x(1+.2)
= 1-.25 / 1+.2
= .75 / 1.2
= .625
in % it would come 62.5%
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We can let the revenue last year = 100.guerrero wrote: ↑Tue Mar 19, 2013 1:00 pmMarketing executives for a certain chewing gum company projected a 20 percent increase in revenue this year over that of last year, but revenue this year actually decreased by 25%. What percent of the projected revenue was the actual revenue ?
A)53%
B)58%
c)62.5%
D)64%
E)75%
Projected revenue was 1.2 x 100 = 120, and actual revenue was 100 x 0.75 = 75.
Thus, actual/projected = 75/120 = 25/40 = ⅝ = 62.5%.
Answer: C
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