SajjadAhmad wrote:

A company's profit was $600,000 in 1980. What was its profit in 1981?

(1) There was a 20 percent increase in income in 1981.

(2) There was a 25 percent increase in costs in 1981

It should be

E1- Profit = Revenue - Costs and 1 doesn't give us enough information to calculate Profit.

2- We know costs increased by 25% but we do not know Revenues or original cost.

1+2 Even when combined, we do not have exact numbers to work with.

For example, if original revenue was 1000000 and cost was 400000 (profit of 600000), increased income and costs would be 1200000 million and 500000, leading to a profit of 700000.

However, if 1980 revenue and costs were 2000000 and 1400000 respectively (profit of 600000), increased revenues and costs would be 2400000 and 1750000. Profit in this case would be 625000.

Since we cannot come up with a single number, our answer is

E.

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