800 Score

[gmat_for_life]

Could anybody please explain why option A is correct?

Regards,
Amit[/spoiler]

[GMATinsight]

Could anybody please explain why option A is correct?

Regards,
Amit[/spoiler]

To compare the two colums of 2003 and 2004

Let's Cancel the equal No. of products from each row for the two years

i.e. the net change is

Model A : 15 sold lesser In 2004 than sold in 2003

Model B : 5 sold more In 2004 than sold in 2003

Model C : 10 sold more in 2004 than sold in 2003

Statement 1: A is most expensive i.e. in 2004 the loss of revenue due to 15 lesser sold n 2004 has been registered the greater than the increase in revenue through 15 extra sold of Model B and C together

SUFFICIENT

Statement 2: Model C is least expensive
NOT Sufficient as we don't know how much is the loss due to decrease in sales of Model A in 2004

Answer: option A

[GMATGuruNY]

Could anybody please explain why option A is correct?

Statement 1:
Let A's price = 10 cents, B's price = 9 cents, and C's price = 9 cents.
Since the number of A sold decreased from 190 to 175 -- for a decrease of 15 units -- the decrease in revenue from A = 15*10 = -150 cents.
Since the number of B sold increased from 200 to 205 -- for an increase of 5 units -- the increase in revenue from B = 5*9 = 45 cents.
Since the number of C sold increased from 210 to 220 -- for an increase of 10 units -- the increase in revenue from C = 10*9 = 90 cents.
Net change = -150 + 45 + 90 = -15 cents.

As the case above illustrates, the net change must be a LOSS, implying that revenues in 2004 were LESS than revenues in 2003.
SUFFICIENT.