In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998? Pick: A) 80 % B) 105 % C) 120 % D) 124.2 % E) 138 %

Rationale: "let ' s test : 1998 revenues = $ 100 profits = $ 10 next we ' re told that , in 1999 , revenue fell by 20 % , but profits were 15 % of revenues . using the numbers from 1998 ( above ) , we end up with . . . 1999 revenues = $ 80 profits = $ 12 we ' re asked to compare the profits in 1999 to the profits in 1998 ( as a percentage ) : $ 12 / $ 10 = 1.2 = 120 % answer : c"
Answer: C