Question

A company has only two divisions: Division A and Division B. Last year, Division A made 60% of the company's total revenue and Division B made 40% of the total revenue. This year, Division A's revenue has decreased by 35% and Division B's revenue has decreased by 5%.
Which division had higher revenue this year?
A) Division A
B) Division B
C) They are both the same
D) It is impossible to determine with the available information

Answer 1

Answer:

Division B would have higher revenue

Explanation:

Answer 2

Answer:

Division B (B)

Explanation:

Let the total company revenue be 'x'

If division A made 60% of the total revenue, this means division A made 60% of x = 0.6x

Division B made 40% of the total revenue i.e 40% of x = 0.4x

If this year Division A revenue decrease by 35% i.e 0.35x, this year revenue for division A will be;

0.6x-0.35x = 0.25x

This means that division A generate 25% of the company revenue this year.

Similarly for division B, their revenue decrease by 5%, their revenue decrease will be 5% of x which is 0.05x, therefore their revenue for this year will be;

0.4x-0.05x

= 0.395x

This means that division B generate 39.5% of the company revenue this year.

According to the calculation, division B had the highest revenue this year.