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Annual Percent Change In Dollar Amount Of Sales [#permalink]
29 May 2014, 08:43
Question Stats:
100% (01:09) correct
0% (00:00) wrong based on 6 sessions
ANNUAL PERCENT CHANGE IN DOLLAR AMOUNT OF SALES AT FIVE RETAIL STORES FROM 2006 TO 2008 Questions 1 to 3 are based on the following data.
Store  Percent Change from 2006 to 2007  Percent Change from 2007 to 2008  P  10  –10  Q  –20  9  R  5  12  S  –7  –15  T  17  –8 
[b]1) If the dollar amount of sales at Store P was $800,000 for 2006, what was the dollar amount of sales at that store for 2008? (A) $727,200 (B) $792,000 (C) $800,000 (D) $880,000 (E) $968,000 2)At Store T, the dollar amount of sales for 2007 was what percent of the dollar amount of sales for 2008?Give your answer to the nearest 0.1 percent. ________________________ % 3)Based on the information given, which of the following statements must be true?Indicate all such statements. (A) For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores. (B) The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006. (C) The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006.
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soumya1989 wrote: ANNUAL PERCENT CHANGE IN DOLLAR AMOUNT OF SALES AT FIVE RETAIL STORES FROM 2006 TO 2008
Store  Percent Change from 2006 to 2007  Percent Change from 2007 to 2008  P  10  –10  Q  –20  9  R  5  12  S  –7  –15  T  17  –8 
1) If the dollar amount of sales at Store P was $800,000 for 2006, what was the dollar amount of sales at that store for 2008? (A) $727,200 (B) $792,000 (C) $800,000 (D) $880,000 (E) $968,000 Many people will INCORRECTLY choose C as their answer, because they feel that a 10% increase followed by a 10% decrease will get us back to where we started. This is a common misconception. Let's solve the question. Store P's 2006 sales = $800,000 The table says that, from 2006 to 2007, sales INCREASED 10% 10% of $800,000 = $80,000 So, the TOTAL sales for 2007 = $800,000 + $80,000 = $880,000Next, the table says that, from 2007 to 2008, sales DECREASED 10% 10% of $880,000 = $88,000 So, the TOTAL sales for 2008 = $880,000  $88,000 = $792,000 Answer: Cheers, Brent
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GRE Instructor
Joined: 10 Apr 2015
Posts: 763
Followers: 34
Kudos [?]:
661
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soumya1989 wrote: Questions 1 to 3 are based on the following data. ANNUAL PERCENT CHANGE IN DOLLAR AMOUNT OF SALES AT FIVE RETAIL STORES FROM 2006 TO 2008
Store  Percent Change from 2006 to 2007  Percent Change from 2007 to 2008  P  10  –10  Q  –20  9  R  5  12  S  –7  –15  T  17  –8 
2)At Store T, the dollar amount of sales for 2007 was what percent of the dollar amount of sales for 2008? Give your answer to the nearest 0.1 percent. ________________________ % Notice that we don't need to know anything about the 2006 sales figures here. All we need to know is that from 2007 to 2008, the sales DECREASED 8% So, let's PLUG IN some nice values for 2007 and 2008 that meet this condition. How about: In 2007, total sales = $100 In 2008, total sales = $92As you can see, these figures show an 8% decrease from 2007 to 2008 Question: The dollar amount of sales for 2007 was what percent of the dollar amount of sales for 2008? In other words, $100 is what percent of $92? In other words, express 100/ 92 as a percent. Well, 100/ 92 = 1.08695... This equals 108.7% (rounded to the nearest tenth of a percent) Answer: Cheers, Brent
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GRE Instructor
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Kudos [?]:
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Re: Annual Percent Change In Dollar Amount Of Sales [#permalink]
21 May 2015, 15:02
soumya1989 wrote: ANNUAL PERCENT CHANGE IN DOLLAR AMOUNT OF SALES AT FIVE RETAIL STORES FROM 2006 TO 2008
Store  Percent Change from 2006 to 2007  Percent Change from 2007 to 2008  P  10  –10  Q  –20  9  R  5  12  S  –7  –15  T  17  –8 
3)Based on the information given, which of the following statements must be true? Indicate all such statements. (A) For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores. (B) The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006. (C) The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006. (A) For 2008 the dollar amount of sales at Store R was greater than that at each of the other four stores.This need not be true. The figures in this table are all RELATIVE from year to year Sure, Store R may have seen the biggest PERCENT increase in sales figures, but we know nothing about the actual sales figures. For example, it's possible that Store R's sales figures $100 in 2006, $105 in 2007 and $117.60 in 2008 Meanwhile, it's possible that Store P's sales figures $100,000 in 2006, $110,000 in 2007 and $99,000 in 2008 (B) The dollar amount of sales at Store S for 2008 was 22 percent less than that for 2006.This need not be true. To see why, let's plug in some values. Let store S's 2006 sales = $100 The table says that, from 2006 to 2007, sales DECREASED 7% So, the TOTAL sales for 2007 = $93
Next, the table says that, from 2007 to 2008, sales DECREASED 15% 15% of $93 = $13.95 So, the TOTAL sales for 2008 = $93  $13.95 = $79.05
So, sales decreased from $100 to $79.05 This does NOT represents a 22% overall decrease. (C) The dollar amount of sales at Store R for 2008 was more than 17 percent greater than that for 2006.This IS be true.
To see why, let's plug in some values. Let store R's 2006 sales = $100 The table says that, from 2006 to 2007, sales INCREASED 5% So, the TOTAL sales for 2007 = $105
Next, the table says that, from 2007 to 2008, sales INCREASED 12% 12% of $105 = $12.60 So, the TOTAL sales for 2008 = $105 + $12.60 = $117.60
So, sales increased from $100 to $117.60 This DOES represents an overall increase of more than a 17%. Answer: Cheers, Brent
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