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Questions and Answers
What is the rival company's original profit?
What is the rival company's original profit?
If the rival company's profit increases by 20%, what will be its new profit?
If the rival company's profit increases by 20%, what will be its new profit?
How much more than the rival company's new profit does the company's profit need to be?
How much more than the rival company's new profit does the company's profit need to be?
What is the difference between the company's profit and the rival company's new profit?
What is the difference between the company's profit and the rival company's new profit?
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How much will the company's profit need to increase to remain $3000 more than the rival company's new profit?
How much will the company's profit need to increase to remain $3000 more than the rival company's new profit?
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Study Notes
Company Profits
- A company's profit is $15000.
- The company's profit is $3000 less than five times the amount of a rival company's profit.
Rival Company's Profit
- The rival company's profit is 1/5 of ($15000 + $3000) = $18000 / 5 = $3600.
- The rival company's profit increases by 20%.
- The new profit of the rival company is $3600 + (20% of $3600) = $3600 + $720 = $4320.
Increase in Company's Profit
- To remain $3000 more than the rival company's new profit, the company's new profit needs to be $4320 + $3000 = $7320.
- The company's profit needs to increase by $7320 - $15000 = $5820.
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Description
Determine the required profit increase for a company to remain ahead of a rival company's new profit. The rival company's profit increases by 20%. Calculate the necessary increase to maintain the $3000 difference.
