Source: Veritas Prep
Last month, a florist gave 7 percent of her sales revenue to her employees in bonuses. This month, she gave them 5 percent of her sales revenue, and sales were up 20 percent from last month. By approximately what percentage did the bonuses change from last month to this month?
A. -14.3%
B. -2%
C. 0%
D. 2%
E. 6%
The OA is A.
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Last month, a florist gave 7 percent of her sales revenue to
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BTGmoderatorLU
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Choose a "nice" number for the sales revenueBTGmoderatorLU wrote:Source: Veritas Prep
Last month, a florist gave 7 percent of her sales revenue to her employees in bonuses. This month, she gave them 5 percent of her sales revenue, and sales were up 20 percent from last month. By approximately what percentage did the bonuses change from last month to this month?
A. -14.3%
B. -2%
C. 0%
D. 2%
E. 6%
The OA is A.
Let $100 = LAST MONTH's revenue
So, $120 = THIS MONTH's revenue (since sales were up 20 percent from last month)
LAST month, a florist gave 7 percent of her sales revenue to her employees in bonuses
So, bonuses = 7% of $100
= $7
THIS month, she gave them 5 percent of her sales revenue
So, bonuses = 5% of $120
= $6
By approximately what percentage did the bonuses change from last month to this month?
We must calculate the percent change from $7 to $6
Percent change = 100(new - old)/old
= 100($6 - $7)/$7
= -100/7
≈-14
Answer: A
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Scott@TargetTestPrep
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BTGmoderatorLU wrote:Source: Veritas Prep
Last month, a florist gave 7 percent of her sales revenue to her employees in bonuses. This month, she gave them 5 percent of her sales revenue, and sales were up 20 percent from last month. By approximately what percentage did the bonuses change from last month to this month?
A. -14.3%
B. -2%
C. 0%
D. 2%
E. 6%
The OA is A.
We can assume the revenue for last month was $1,000, so the bonus for last month was $70. Since the revenue this month went up 20% from last month, the revenue for this month was $1,200, and hence the bonus for this month was $60. So the percent change is:
(60 - 70)/70 = -10/70 = -1/7 = -14.3%
Answer: A
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