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Math Help - Profits, Revenues and Costs

  1. #1
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    Profits, Revenues and Costs

    Hi all,

    Im practising online graduate tests and have got stumped on this one



    Apart from working out the 2.1% and 4.9% values, ive no idea where to go from there.

    Any help would be appreciated.

    Thanks
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  2. #2
    Super Member
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    The table shows the profit of the companies if no bonuses were issued.

    After working out what 2.1% of Company 1's profit and 4.9% of Company 2's profit is, subtract them from the combined profit (add the profits of company 1 and 2 from the table) they would have recieved if it wasn't for the bonuses.

    This number is the new combined profit for both company, with the bonuses taken into account.

    Now
    Profit = Revenue - Costs

    Substitute the new combined profit and the combined revenue (700,000, given), and you'll be able to determine the combined cost incurred.
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  3. #3
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    Jan 2010
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    Adjust profits for bonuses... (I'm rounding since the multiple choice answers are quite diverse)

    Company 1 adjusted profit = 360,000
    Company 2 adjusted profit = 260,000

    Combined adjusted profit = 620,000

    Combined revenue is given as 700,000

    It gives the formula, Profit = Revenue - Cost

    Use basic algebraic isolation to solve for cost...

    Revenue - Profit = Cost

    Plug in...

    700,000 - 620,000 = Cost

    You can figure out the answer... remember that we rounded...
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