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%
The OA is D
Source: GMAT Paper Tests
In 1982 and 1983, Company B's operating expenses were $12.0
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The profit in 1982 = 15.6 - 12.0 = $3.6 millionswerve 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%
The profit in 1983 = 18.8 - 14.0 = $4.8 million
Percent change = (100)(new - old)/old
= (100)(4.8 - 3.6)/3.6
= (100)(1.2)/(3.6)
= (100)(1/3)
= 33 1/3%
Answer: D
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swerve 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%
The profit in 1982 was 15.6 - 12.0 = 3.6 million dollars, and, in 1983, the profit was 18.8 - 14.0 = 4.8 million dollars.
We use the formula for percent increase: (new - old)/old x 100. The percent increase in profit from 1982 to 1983 was:
(4.8 - 3.6)/3.6 x 100
1.2/3.6 x 100
12/36 x 100 = 1/3 x 100 = 33 1/3%
Answer: D
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