GMAT Question of the Day – Problem Solving – Ratio/Word Problem
On July 1st Company X and Company Y each sold their entire inventories of Widget Z. If Company X sold 40% more units of Widget Z than Company Y sold and charged 60% less than Company Y per unit of Widget Z, which of the following could be the combined revenue from the sale of Widget Z for Companies X and Y on July 1st?
GMAT Question of the Day Solution
When a GMAT question asks for potential values (which of the following could be…) you probably need to think in terms of making a range (max/min) or in terms of ratios/divisibility. In this case we are most certainly dealing with proportions so think in terms of ratios. Ratios are the most basic relationship between values (You can almost think of them as the prime factorization of the relationship. Kind of.) In this GMAT question of the day we need to find the basic relationship between the two companies and then find a multiple of that relationship in the answer choices.