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- For how many years did expenses exceed revenue?

Answer: B

The point corresponding to expenses is above the point corresponding to revenues for only two years, 2010 and 2011.

- The percent change in gross profit from 2015 to 2016 is approximately what percent of the percent change in gross profit from 2016 to 2017?

- 240%
- 60%
- 53%
- 42%
- 17%

Answer: D

Solution: First, calculate the percent change in profit for the two time periods.

In 2015, the profit was $24 million − $18 million = $6 million.

In 2016, the profit was $26 million − $21 million = $5 million.

In 2017, the profit was $18 million − $15 million = $3 million.

The approximate percent change in profits from 2015 to 2016 was: (6-5)/6 x 100 = 16.66%

The approximate percent change in profits from 2016 to 2017 was: (5-3)/5 x 100 = 40%

The Question asks: The percent change in gross profit from 2015 to 2016 (16.66%) is approximately what percent of the percent change in gross profit from 2016 to 2017 (40%)?

So the question essentially is 16.66 is what % of 40?

16.66/40 x 100 = 41.66%

- If the revenues in 2019 were $4 million less, and the expenses for 2019 were $5 million more, then the average (arithmetic mean) annual profit for the 10 years shown would be approximately how much less?

- $100,000
- $400,000
- $500,000
- $700,000
- $900,000

Answer: E

Solution: This is a trick question, the smart test taker understands that it is just a matter of factoring in the change. You do NOT need to find the profit for all the years.

In 2019, the Profit was 29 – 18 = 11 million.

But revenue has fallen by 4m to become 25m and expenses have risen by 5m to become 23m

Profit = 25 – 23 = 2m from the actual 11m

Change in profit for 2019 = 11 – 2 = $9 million

The change would distribute evenly throughout the 10-year period, the change in the average would be 9m/10 = $900,000

- In 2010, Product D and Product A together contributed how many millions of dollars?

Answer: 2.7

In 2010, Product D and Product A together contributed 28% and 17% = 45% of the total 6 million.

45/100 x 6 = 2.7m

- What was the increase in the contribution of Product E from 2010 to 2015

- $6.50 million
- $4.95 million
- $6.05 million
- $7.87 million
- $5.14 million

Answer: C

In 2010, Product E contributed 13% of the 7 million revenue = $910,000.

In 2015, Product E contributed 29% of the 24 million revenue = $6,960,000.

Change = $6,050,000

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