Problem Solving

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 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

Is the answer B?

revenue 1996 1997
car x 0.89x
truck y 1.07y

0.89x + 1.07y = 1.01( x + y )
if you solve this, then you will get 2x=y

what we are looking for is the ratio of car revenue in 1996 (x) to truck revenue in 1996 (y).

so, x/y = x/2x

the answer is 1:2

A.

let me know if you get confused.