Hey guys,
i know this topic is frm 5 years ago, but i got stuck on MGMAT explanation.
Ok, I found how Rc and Rt are related, but I cant figure how it is conclusive to find how Rc is related for total revenue.
Since
Revenue = Rt + Rc
Rt = Qt x Pt
Rc = Qc x PC
And we found that Rt = 0.88 Rc
If I replace Rt in revenue equation my result will be
Revenue = 0.88 Rc + Rc
What could I conclude with this final equation??
i know this topic is frm 5 years ago, but i got stuck on MGMAT explanation.
Ok, I found how Rc and Rt are related, but I cant figure how it is conclusive to find how Rc is related for total revenue.
Since
Revenue = Rt + Rc
Rt = Qt x Pt
Rc = Qc x PC
And we found that Rt = 0.88 Rc
If I replace Rt in revenue equation my result will be
Revenue = 0.88 Rc + Rc
What could I conclude with this final equation??










