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A certain company is experiencing a 15% decrease in its monthly revenue due to a decline in sales. What is the total revenue loss for the company this month?

Sunday 31 March 2024, by hurtado claudio

A certain company is experiencing a 15% decrease in its monthly revenue due to a decline in sales. What is the total revenue loss for the company this month?

(1) The company’s monthly revenue before the decrease was £500,000.

(2) The company’s total revenue loss for every £10,000 decrease in revenue is £1,500.

A. Statement (1) ALONE is sufficient but statement (2) ALONE is not sufficient.

B. Statement (2) ALONE is sufficient but statement (1) ALONE is not sufficient.

C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

D. EACH statement ALONE is sufficient.

E. Statements (1) and (2) TOGETHER are not sufficient.

Answer C.

Answer:

To determine the total revenue loss, we need to know both the percentage decrease and the company’s initial revenue.

Statement (1) provides the company’s initial monthly revenue, which is £500,000. However, it does not provide information about the percentage decrease, so it alone is not sufficient.

Statement (2) gives the relationship between the decrease in revenue and the total revenue loss for the company. While it provides the rate at which revenue decreases, it does not give the initial revenue amount. Thus, it alone is not sufficient.

Combining both statements, we have the initial revenue (£500,000) and the rate of revenue loss (£1,500 for every £10,000 decrease). With this information, we can calculate the total revenue loss.

Therefore, both statements together are sufficient to answer the question.

The best answer is C.

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