In 1999 Company X's gross profit is what percent of its revenue?

(1) In 1999 Company X's gross profit was 1/3 of its expenses
(2) In 1999 Company X's expenses were 3/4 of its revenue

I went with C. Yet answer is D. Which implies that GMAT assumes expenses = cost of goods sold (vs. operating expenses)??

If P=Gross Profit & R=Revenue; the question is : What is P/R as a percentage.

Statement 1 gives a definitive answer of 25%

Statement 2 gives a definitive answer of 25%

Therefore each statement is sufficient by themselves, therefore the correct answer is D.

quote="Borcho"]In 1999 Company X's gross profit is what percent of its revenue?

(1) In 1999 Company X's gross profit was 1/3 of its expenses
(2) In 1999 Company X's expenses were 3/4 of its revenue

I went with C. Yet answer is D. Which implies that GMAT assumes expenses = cost of goods sold (vs. operating expenses)??[/quote]

Still unclear. Please can you explain more

[/quote]

I am not satisfied with this answer. Manhattan GMAT staff - your take?