5 Questions
What is the rival company's original profit?
$4800
If the rival company's profit increases by 20%, what will be its new profit?
$5760
How much more than the rival company's new profit does the company's profit need to be?
$3000
What is the difference between the company's profit and the rival company's new profit?
$3000
How much will the company's profit need to increase to remain $3000 more than the rival company's new profit?
$1400
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.
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.
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