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1. Due to the recession, a show room reported that revenue from luxury car sales were down by 11% and revenue from economy car sales were up by 7%. If the total revenue were up by 1% then what is the ratio of revenue from luxury car sales to revenue from economy car sales?
- A. 3 : 2
- B. 3 : 2
- C. 3 : 2
- D. 3 : 2
Answer: Option D
Explanation:
Let the usual revenues be L and E respectively. So, total usual revenue is (L + E).
New revenue from luxury car sales = L - 11% of L = L - 0.11L = 0.89L
New revenue from economy car sales = E - 7% of E = E - 0.07E = 1.07E
New total revenue = 0.89L + 1.07E
ATQ, {(0.89L + 1.07E) - (L + E)} / (L + E) = 1/100
or, 100(0.89L + 1.07E - L - E) = L + E
or, 100(0.07E - 0.11L) = L + E
or, 7E - 11L = L + E
or. 11L + L = 7E - E
or, 12L = 6E
or, L/E = 6/12 = 1/2
or, L : E = 1 : 2
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