The output of a factory is increased by 10% to keep up with rising demand. To handle the holiday rush, this new output is increased by 20%. By approximately what percent would the output of the factory now have to be decreased in order to restore the original output?
A. 20%
B. 24%
C. 30%
D. 32%
E. 79%
The OA is B.
If original production is P,
First increase by 10% will be, 1.1*P
Second increase by 20% will be, 1.2*1.1*P
Now, how can I determine the decreased to restore the original output? Experts, I need your help. Thanks.
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The output of a factory is increased by 10% to keep up...
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GMATGuruNY
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Let the original output = 100 units.swerve wrote:The output of a factory is increased by 10% to keep up with rising demand. To handle the holiday rush, this new output is increased by 20%. By approximately what percent would the output of the factory now have to be decreased in order to restore the original output?
A. 20%
B. 24%
C. 30%
D. 32%
E. 79%
After a 10% increase, the new output = 100 + (10% of 100) = 100 + 10 = 110 units.
After an additional 20% increase, the resulting output = 110 + (20% of 110) = 110 + 22 = 132 units.
To return to the original output of 100 units, the resulting output must decrease by 32 units.
Percent decrease from 132 to 100 = (difference)/(bigger) = 32/132 = 16/62 ≈ 15/60 = 1/4 = 25%.
Only B is viable.
The correct answer is B.
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Let's say the original output is n; after the increases, the new output is:swerve wrote:The output of a factory is increased by 10% to keep up with rising demand. To handle the holiday rush, this new output is increased by 20%. By approximately what percent would the output of the factory now have to be decreased in order to restore the original output?
A. 20%
B. 24%
C. 30%
D. 32%
E. 79%
1.1 x 1.2 x n = 1.32n = (132/100)n
To reduce (132/100)n back to n, we must multiply by 100/132 since 132/100 x 100/132 = 1.
100/132 = 50/66 = 25/33 ≈ 76%
Thus we have to reduce the new output by 100% - 76% = 24% to restore the original output.
Answer: B
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