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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## The following tables show the revenues and costs, in tagged by: AAPL ##### This topic has 1 expert reply and 0 member replies ### Top Member ## The following tables show the revenues and costs, in ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Magoosh The following tables show the revenues and costs, in thousands of dollars, for a small company in the year 2007 Profit = Revenue - Costs. If costs remain constant from 2007 to 2008, and if revenues increase by 10% in that same period, by what percent will profits increase from 2007 to 2008? A. 11.6% B. 25.8% C. 34.7% D. 71.2% E. 116.3% OA C ### GMAT/MBA Expert Elite Legendary Member Joined 23 Jun 2013 Posted: 10020 messages Followed by: 494 members Upvotes: 2867 GMAT Score: 800 Hi All, We're told that Profit = Revenue - Costs and that costs will remain constant from 2007 to 2008, while revenues INCREASE by 10% in that same period. We're asked for the percent increase in PROFITS from 2007 to 2008. This question comes down to some Arithmetic and the Percentage Change Formula. In addition, since the answer choices are sufficiently 'spread out', we can use estimation to save some calculation time... Profit in 2007 = (Revenue in 2007) - (Costs in 2007) = 1052 - 749 = an estimate of 1050 - 750 = 300 We're told that, in 2008, Revenue will INCREASE by 10% while Costs will stay the same... Profit in 2008 = (Revenue in 2008) - (Costs in 2008) = (1.1)(1050) - 750 = 1155 - 750 = 405 Percentage Change = (New - Old)/(Old) = (Difference)/(Original) = (405 - 300)/(300) = 105/300 = a little more than 1/3 = a little more than 33% Final Answer: C GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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