In 1998 the profits of company N were 10 percent of revenues. In 1999,

Take simple numbers
98--100--10 $--10%
99--80--12$--15%(80 since revenue fell by 20%)
x=12/10*100
x=12*10
x=120%

In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?
A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

Let 1998 revenue be = 100
1998 Profits = 10% of revenue = 10% of 100 =\(\frac{10}{100}\) x 100 = 10
1999 revenue = revenue fell by 20% of 1998 revenue = 80% of 100 = \(\frac{80}{100}\) x 100 = 80
1999 Profits = 15% of 1999 revenue = 15% of 80 = \(\frac{15}{100}\) x 80 = 12
Required fraction = 1999 Profits / 1998 Profits x 100 = \(\frac{12}{10}\) x 100 = 120%
Answer C...

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We can apply a few formulas to solve this problem

$100(.1) = $10 profit in 1998

$100(.8)(.15) = $12 profit in 1999

new-old/ old = $12-$10/$10

120%

Thus
"C"

We can let the revenues in 1998 = 100. Thus, the profits in 1998 = 100 x 0.1 = 10, the revenues in 1999 = 100 x 0.8 = 80, and the profits in 1999 = 80 x 0.15 = 12. Therefore, the profits in 1999 were 12/10 x 100 = 120 percent of the profits in 1998.

Answer: C