GRE Prep Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Profit = Revenue Costs. If costs remain constant from 2007 to 2008
[#permalink]
16 Oct 2024, 23:58
16 Oct 2024, 23:58
Expert Reply
00:00
Question Stats:
100% (01:33) correct
0% (00:00) wrong based on 3 sessions
Hide Show timer Statistics
The following tables show the revenues & 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%
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%
- Part of the project: GRE Quant & Verbal ADVANCED Daily Challenge 2024 Edition - Gain 20 Kudos & Get FREE Access to GRE Prep Club TESTS
- Also replying to the unanswered questions
Profit = Revenue Costs. If costs remain constant from 2007 to 2008
[#permalink]
17 Dec 2024, 10:22
17 Dec 2024, 10:22
Expert Reply
Current profit is about $300K --- that's the "whole" of the percent change. If revenues increase by 10%, approximately $100K, all of which is added to the profits because costs remain fixed. That's the "part". Percent = 100/300 = 1/3 = 33.3%, very close to C.
In a more precise calculation, current profit is $1,052,000 - $749,000 = $303,000. If revenues increase by 10%, that's an additional $105,200.
\(\begin{aligned}
& \text { Percent increase }=\frac{\$ 105,200}{\$ 303,000} \times 100 \%=34.7 \% \\
& \text { Answer }=\text { C. }
\end{aligned}\)
In a more precise calculation, current profit is $1,052,000 - $749,000 = $303,000. If revenues increase by 10%, that's an additional $105,200.
\(\begin{aligned}
& \text { Percent increase }=\frac{\$ 105,200}{\$ 303,000} \times 100 \%=34.7 \% \\
& \text { Answer }=\text { C. }
\end{aligned}\)
Moderators:
