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Question

Q21. A certain company that sells only cars and trucks reported that revenues from car sales in 2014 were down 11 percent from 2013 and revenues from truck sales in 2014 were up 7 percent from 2013. If total revenues from car sales and truck sales in 2014 were up 1 percent from 2013, what is the ratio of revenue from car sales in 2013to revenue from truck sales in 2013?

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Solution

The correct option is **A**

(a) 1 : 2

Let the revenues in 2013 from cars be 100c, and the revenues from truck sales be 100t;

Then the revenues in 2014 from cars will be 89c, and the revenues from truck sales will be 107t;

Given that the sales in 2014 were 1% higher than that of 2013;

Therefore (89c + 107t) = 1.01(100c+100t)

Or

89c+107t = 101c+101t or 12C = 6T.

Therefore C/T = ½.

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