AAPL wrote:GMAT Paper Tests

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%

OA D

Company B's profit in 1982 = 15.6 - 12 = $3.6 M;
Company B's profit in 1983 = 18.8 - 14 = $4.8 M

Percent increase in Company B's profit from 1982 to 1983 = [(4.8 - 3.6) / 3.6]*100% = 33 1/3%

The correct answer: D

Hope this helps!

-Jay
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AAPL wrote:GMAT Paper Tests

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%

OA D

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