Let the revernue from cars in 1996 = c
revenue from trucks in 1996 = t
Total revenue = c+t

In 1997

revenue from car sales went down by 11%

c - .11c = 0.89c

revenue from truck sales went up by 7%

t+.07t = 1.07t

Total revenue went up by 1%

1.01 (c+t)

0.89c + 1.07t = 1.01 (c+t)
c/t = 0.06/0.12 = 1:2

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qtn is discussed here

It's good that you see you can discard C, D, and E.

The easiest and quickest way to solve it once you eliminate these 3 is to just pick some number that satisfy the ratios in the answer choices.


For Answer Choice A:

'96 Car Revenue = 100
'96 Truck Revenue = 200
'96 Total Revenue = 300

'97 Car Revenue = 89 (11% drop)
'97 Truck Revenue = 214 (7% increase)
'97 Total Revenue = 303

303 is a 1 percent increase from 300. Therefore, the ratio is 1:2.


Now if you want to see this algebraically.

Let x = '96 car revenue
let y = '96 truck revenue

.89X + 1.07Y = 1.01(X + Y)
.89X + 1.07Y = 1.01X + 1.01Y
.06Y = .12X
.06/.12 = X/Y
1/2 = X/Y

Ratio of car revenue to truck revenue is 1:2