# Thread: Profits, Revenues and Costs

1. ## 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

2. 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.

3. 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 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...