In 1992 a clothing company sold its jeans to retailers for a fixed price per pair. In 1993 the number of pairs the company sold to retailers increased by 30 percent, while the price per pair increased by 15 percent. If the company's gross revenue from the sale of jeans in 1992 was $10 million, what was its approximate revenue from the sale of jeans in 1993?

Correct answer marked below

$11.5 million

$12.5 million

$13.0 million

$14.5 million

$15.0 million

Correct

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Comments

EshanJun 24

Wait, is it just 10 * 1.3 * 1.15? That gives 14.95, so E. But why does D exist? 10 * 1.45?

DenzylJul 5

D is probably for people who add the percentages: 30+15=45%. Classic trap.

HuanJun 29

Yeah, they want you to multiply the multipliers, not add percents.

AkshayaApr 26

Got E. But I initially thought revenue increase = 30% + 15% = 45%, which would be 14.5 (D). Good reminder that percentage changes compound.

VaishnaviApr 30

Same! I almost picked D. The wording 'increased by' twice makes it multiplicative.

UtkarshSep 19

This one felt straightforward for 605-655. Just multiply 1.3 and 1.15. Approx 1.5, so 15M. E.

LachlanJul 22

Can someone explain why it's not 10 * (1 + 0.30 + 0.15)? I get that it's 1.3 * 1.15 but I want to understand the logic behind it.

ChengchenJul 26

Because the 15% price increase applies to the new quantity sold. Think of it as (original quantity * 1.3) * (original price * 1.15).

What this question tests

Your fluency with the order of operations, fractions, decimals, and basic number sense — the foundation every quant question leans on.

Applying the order of operations out of sequence or rounding intermediate values before the final step.