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 $18.0 million, respectively. What was the percentage 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.
I solved this PS question as follows,
Profit = Revenues - Operating expenses
Profit in 1982 = Revenue in 1982 - Operating expenses in 1982
= 15.6 million - 12.0 million
= $3.6 million.
Profit in 1983 = Revenue in 1983 - Operating expenses in 1983
= 18.8 million - 14.0 million
= $4.8 million.
Percentage increase in the company b's profit from 1982 to 1983 = (4.8 - 3.6)/3.6 *100 = (1.2/3.6)*100 = 33 1/3%.
Has anyone another strategic approach to solve it? Regards!
A. 3%
B. 16 2/3%
C. 25%
D. 33 1/3%
E. 60%
The OA is D.
I solved this PS question as follows,
Profit = Revenues - Operating expenses
Profit in 1982 = Revenue in 1982 - Operating expenses in 1982
= 15.6 million - 12.0 million
= $3.6 million.
Profit in 1983 = Revenue in 1983 - Operating expenses in 1983
= 18.8 million - 14.0 million
= $4.8 million.
Percentage increase in the company b's profit from 1982 to 1983 = (4.8 - 3.6)/3.6 *100 = (1.2/3.6)*100 = 33 1/3%.
Has anyone another strategic approach to solve it? Regards!
