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The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to the
marketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?
(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars
(2) The ratio of revenue of the company to the number of customers it serves is 4:1
  • a)
    Statement (1) ALONE is sufficient, but statement (2) alone is
    not sufficient to answer the question asked.
  • b)
    Statement (2) ALONE is sufficient, but statement (1) alone is
    not sufficient to answer the question asked.
  • c)
    BOTH statements (1) and (2) TOGETHER are sufficient to
    answer the question asked, but NEITHER statement ALONE
    is sufficient to answer the question asked
  • d)
    EACH statement ALONE is sufficient to answer the question
    asked.
  • e)
    Statements (1) and (2) TOGETHER are NOT sufficient to
    answer the question asked, and additional data specific to the
    problem are needed
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The revenue of a company is directly proportional to the number of cus...
Step 1 & 2: Understand Question and Draw Inference
Given: Let revenue = R, Number of customers = C and marketing spend = M
  • R = kC, where k is a proportionality constant
  • C = pM, where p is a proportionality constant
  • So, R = (kp)M . . . (I)
  • So, to answer the question, we need the value of the product of k and p
Step 3 : Analyze Statement 1 independent
  1. If M = 250,000, then R = 106
    • From (I), 106 = (kp)(250,000)
    • From this equation, we can get the value of kp
Thus, Statement 1 alone is sufficient to answer the question.
Step 4 : Analyze Statement 2 independent
  • So, R = 4C
    • As R = kC, we have, k = 4
Since we don’t know the value of p yet, we cannot find the value of product kp Thus, Statement 2 alone is not sufficient to answer the question.
Step 5: Analyze Both Statements Together (if needed)
Since we’ve already arrived at a unique answer in Step 3, this step is not required
Answer: Option A
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The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to themarketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. Can you explain this answer?
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The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to themarketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to themarketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The revenue of a company is directly proportional to the number of customers it serves, which in turn is directly proportional to themarketing spend of the company. What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. Can you explain this answer?.
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What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. 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What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. 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What is the revenue of the company if it spends one million dollars in marketing?(1) If the company spends $250,000 in marketing, it earns a revenue of ten million dollars(2) The ratio of revenue of the company to the number of customers it serves is 4:1a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question askedd)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are neededCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice GMAT tests.
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