📊 GMAT Exam Prep

A local charity plans to raise funds through a gala event. They project ticket sales to account for 60% of their total revenue, with corporate sponsorships making up the rest. If ticket sales are 10% lower than projected, and corporate sponsorships are 20% higher than projected, what is the impact on the charity's total projected revenue?

A Total revenue will be 2% higher than projected.
B Total revenue will be 2% lower than projected.
C Total revenue will be 4% higher than projected.
D Total revenue will be 4% lower than projected.

✓ Correct Answer: Option B

Assume total projected revenue is 100 units. Ticket sales: 60 units. Corporate sponsorships: 40 units. New ticket sales: 60 * 0.9 = 54 units. New sponsorships: 40 * 1.2 = 48 units. New total revenue: 54 + 48 = 102 units. The impact is (102-100)/100 = 2% higher.

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