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19 Feb 2024, 10:23
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Each company incurred a loss in at least one of the three years.: No
The highest profit as a percentage of expenses incurred by any company was in 2013.: No
Each company did not incur a profit for at least one of the three years.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
65% (02:37) correct
35%
(02:37)
wrong
based on 1432
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The table below provides details of the revenue and expenses (in USD) incurred by six companies (A to F) over a three-year period: 2011, 2012, and 2013. Profit or loss is calculated as Revenue - Expenses.
For each of the following statements, select Yes if the statement is true based on the information provided. Otherwise, select No.
| Year | Year 2011 | Year 2012 | Year 2013 | |||
| Company | Revenue | Expenses | Revenue | Expenses | Revenue | Expenses |
|---|---|---|---|---|---|---|
| A | 50,000 | 40,000 | 75,000 | 60,000 | 60,000 | 80,000 |
| B | 60,000 | 50,000 | 70,000 | 70,000 | 100,000 | 80,000 |
| C | 45,000 | 35,000 | 60,000 | 65,000 | 85,000 | 80,000 |
| D | 50,000 | 40,000 | 70,000 | 60,000 | 70,000 | 80,000 |
| E | 45,000 | 40,000 | 65,000 | 60,000 | 80,000 | 85,000 |
| F | 40,000 | 20,000 | 50,000 | 60,000 | 90,000 | 50,000 |
For each of the following statements, select Yes if the statement is true based on the information provided. Otherwise, select No.
| Yes | No | |
| Each company incurred a loss in at least one of the three years. | ||
| The highest profit as a percentage of expenses incurred by any company was in 2013. | ||
| Each company did not incur a profit for at least one of the three years. |
ShowHide Answer
Official Answer
Each company incurred a loss in at least one of the three years.: No
The highest profit as a percentage of expenses incurred by any company was in 2013.: No
Each company did not incur a profit for at least one of the three years.: Yes
05 Jan 2025, 02:21
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Bunuel
Official Solution:
Statement 1:
To evaluate this statement, we need to compare revenue and expenses for each company over the three-year period. Upon review, we can see that Company B did not incur a loss in any of the years—it broke even in 2012 and made a profit in both 2011 and 2013. Therefore, this statement is not true.
Statement 2:
The highest profit as a percentage of expenses essentially means the highest revenue-to-expenses ratio. The highest ratio in 2013 was for Company F: 90,000/50,000 = 1.8 (80% profit). Let's check if any company in 2011 or 2012 had a higher revenue-to-expenses ratio. Quickly scanning the data, we can see that in 2011, Company F had an even higher ratio: 40,000/20,000 = 2, indicating a profit of 100%. Therefore, this statement is not true.
Statement 3:
Companies A, C, D, E, and F experienced a loss in at least one year, while Company B broke even in 2012, meaning it did not incur a profit either. Therefore, this statement is true.
Correct answer:
Each company incurred a loss in at least one of the three years. "No"
The highest profit as a percentage of expenses incurred by any company was in 2013. "No"
Each company did not incur a profit for at least one of the three years. "Yes"
General Discussion
08 Jan 2025, 11:34
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1. We have to check whether the following statements are true or false.
2. Each company incurred a loss in at least one of the three years. A loss happens when Revenue - Expenses < 0. For all companies except B we can that this is true. As for company B we have the following:
- Year 2011. 60000 - 50000 = 10000 > 0.
- Year 2012. 70000 - 70000 = 0 = 0.
- Year 2013. 100000 - 80000 = 20000 > 0.
No losses happen. So, this statement is false.
3. The highest profit as a percentage of expenses incurred by any company was in 2013. Company F in 2011 had 2 times more profit than expenses (200%). However no company in 2013 and anything near that. So, this statement is false.
4. Each company did not incur a profit for at least one of the three years. This is similar to the first statement. All companies except B had losses, which is also not incurring a profit. Looking at company B year 2012, the difference is 0, which means that they also didn't incur a loss. So, this statement is true.
2. Each company incurred a loss in at least one of the three years. A loss happens when Revenue - Expenses < 0. For all companies except B we can that this is true. As for company B we have the following:
- Year 2011. 60000 - 50000 = 10000 > 0.
- Year 2012. 70000 - 70000 = 0 = 0.
- Year 2013. 100000 - 80000 = 20000 > 0.
No losses happen. So, this statement is false.
3. The highest profit as a percentage of expenses incurred by any company was in 2013. Company F in 2011 had 2 times more profit than expenses (200%). However no company in 2013 and anything near that. So, this statement is false.
4. Each company did not incur a profit for at least one of the three years. This is similar to the first statement. All companies except B had losses, which is also not incurring a profit. Looking at company B year 2012, the difference is 0, which means that they also didn't incur a loss. So, this statement is true.
