A certain company that sells only cars and trucks reported that revenues from car sales in 1997 were down 11 percent from 1996 and revenues from truck sales in 1997 were up 7 percent from 1996. If total revenues from car sales and truck sales in 1997 were up 1 percent from 1996, what is the ratio of revenue from car sales in 1996 to revenue from truck sales in 1996? Correct Answer 1 : 2

Let us say that the revenues from selling cars was  100x and from trucks was 100y in 1996, total revenue: 100x + 100y Revenue in 1997: from cars =   89x  and trucks = 107y total revenue = 89x + 107y = 101x + 101y Solving the above total revenue equation we get: 12x = 6y  or,x/y = 1/2 ∴x:y = 1:2
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