Answer – Division A
EXPLANATION’
Given for last year,
Division A made 60% of the company's total revenue.
Let the company’s total revenue for last year be x
60% of x = 0.6x
Division A made 0.6x last year
Also given for last year,
Division B made 40% of the company's total revenue.
If the company’s total revenue for last year is x
40% of x = 0.4x
Division B made 0.4x last year
For this year,
We are told that division A's revenue has decreased by 35%
Last year’s revenue was 0.6x
Division A’s revenue for this year = 0.6x – (35% of 0.6x)
= (100% of 0.6x) – (35% of 0.6x)
= (100% * 0.6x) – (35% * 0.6x)
= (100% - 35%) * 0.6x
= 65% * 0.6x
= 65/100 * 0.6x
= 0.39x
Therefore this year, Division A’s revenue is 0.39x
Again for this year,
We are told that division B's revenue has decreased by 5%
Last year’s revenue was 0.4x
Division B’s revenue for this year = 0.4x – (5% of 0.4x)
= (100% of 0.4x) – (5% of 0.6x)
= (100% * 0.4x) – (5% * 0.4x)
= (100% - 5%) * 0.4x
= 95% * 0.4x
= 0.38x
Therefore this year, Division B’s revenue is 0.38x
If Division A’s revenue is 0.39x, and Division B’s revenue is 0.38x; then Division A had higher revenue this year.
