Question

A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996?
GMAT Panda Logo

Answer Choices

  • A.
    1 : 2
  • B.
    4 : 5
  • C.
    1 : 1
  • D.
    3 : 2
  • E.
    5 : 3

Steps

ExplanationCalculationsHelp
We first create clear variables for the 1996 revenues using non-ambiguous names.
Theory & Tactics Method Card
TRANS1-A
Click to view full details
We translate the phrase into a relative decrease of 11%.
Theory & Tactics Method Card
TRANS2-D
Click to view full details
We translate the phrase into a relative increase of 7%.
Theory & Tactics Method Card
TRANS2-D
Click to view full details
We translate the phrase by summing the 1997 revenues and setting it equal to a 1% increase on the 1996 total.
Theory & Tactics Method Card
TRANS1-C
Click to view full details
Theory & Tactics Method Card
TRANS2-D
Click to view full details
We then solve that equation to find the ratio .
Scroll horizontally to view all columns

Final Answer

1 : 2