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how to solve this type of problems quickly

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Junior | Next Rank: 30 Posts
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how to solve this type of problems quickly

by envyramana » Wed Jun 25, 2008 12:35 am
In 1982 and 1983, Company B’s operating expenses were $12.0 million and $14.0 million, respectively, and its revenues were $15.6 million and $18.8 million, respectively. What was the percent increase in Company B’s Profit (revenues minus operating expenses) from 1982 to 1983?
(A) 3%
(B) 16 2/3 %
(C) 25%
(D) 33 1/3 %
(E) 60%

Can anyone explain?
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Re: how to solve this type of problems quickly

by nareshattri » Wed Jun 25, 2008 12:44 am
envyramana wrote:In 1982 and 1983, Company B’s operating expenses were $12.0 million and $14.0 million, respectively, and its revenues were $15.6 million and $18.8 million, respectively. What was the percent increase in Company B’s Profit (revenues minus operating expenses) from 1982 to 1983?
(A) 3%
(B) 16 2/3 %
(C) 25%
(D) 33 1/3 %
(E) 60%

Can anyone explain?
Ans is D.
Profit in 1982 = 15.6-12 = 3.6
Profit in 1983 = 18.8-14 = 4.8

so net increase in profit = 4.8 - 3.6 = 1.2
so % increase = 1.2/3.6 * 100 = 33.33%

-Naresh
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