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30 Jan 2025, 02:25
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Company E had the highest profit in all three years.: True
Company C's profit margin decreased every year from 2021 to 2023.: True
The company with the fewest employees in 2021 had the lowest revenue.: True
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
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61% (02:18) correct
39%
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The table below shows the financial performance of five companies (A, B, C, D, and E) over three years. It includes revenue (in millions of dollars), profit margin (as a percentage), and the number of employees.
For each of the following statements, select True if the statement can be verified to be true based on the information provided. Otherwise, select False.
| Company | 2021 Revenue | 2021 Profit Margin | 2021 Employees | 2022 Revenue | 2022 Profit Margin | 2022 Employees | 2023 Revenue | 2023 Profit Margin | 2023 Employees |
|---|---|---|---|---|---|---|---|---|---|
| A | 500 | 10% | 1,000 | 550 | 12% | 1,050 | 600 | 15% | 1,100 |
| B | 300 | 8% | 800 | 320 | 9% | 820 | 350 | 10% | 850 |
| C | 700 | 15% | 1,200 | 750 | 14% | 1,250 | 800 | 13% | 1,300 |
| D | 400 | 12% | 900 | 420 | 11% | 950 | 450 | 10% | 1,000 |
| E | 600 | 20% | 1,100 | 650 | 18% | 1,150 | 700 | 16% | 1,200 |
For each of the following statements, select True if the statement can be verified to be true based on the information provided. Otherwise, select False.
| True | False | |
| Company E had the highest profit in all three years. | ||
| Company C's profit margin decreased every year from 2021 to 2023. | ||
| The company with the fewest employees in 2021 had the lowest revenue. |
ShowHide Answer
Official Answer
Company E had the highest profit in all three years.: True
Company C's profit margin decreased every year from 2021 to 2023.: True
The company with the fewest employees in 2021 had the lowest revenue.: True
07 Feb 2025, 02:30
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Official Solution:
Statement 1:
Profit = Revenue * Profit Margin. Observe that we don’t need to calculate the profit for all companies in all years. By quickly glancing through the numbers, we can identify which companies could potentially have the highest profit based on their high revenue and high profit margin. This allows us to save time by focusing only on the most likely candidates.
In this case, Company C and Company E stand out as having both high revenue and high profit margins. Calculating these confirms that E had the highest profits in all three years. Thus, this statement is True.
Statement 2:
To evaluate this statement, check Company C's profit margin trends over the three years:
2021: 15% → 2022: 14% → 2023: 13%.
The profit margin consistently decreased each year. Thus, this statement is True.
Statement 3:
In 2021, the company with the fewest employees was Company B (800 employees). Additionally, Company B had the lowest revenue ($300M) among all companies in the same year. Since both conditions are satisfied, this statement is True.
Correct answer:
Company E had the highest revenue in all three years. "True"
Company C's profit margin decreased every year from 2021 to 2023. "True"
The company with the fewest employees in 2021 had the lowest revenue. "True"
General Discussion
31 Jan 2025, 13:25
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1. The question asks us to figure out whether the following statements are true or false.
2. Company E had the highest profit in all three years. Profit is revenue multiplied by profit margin. Companies A, B, and D have less revenue and profit margin than company E for all 3 years. Let's compare company E's profit with company C's profit across 2021 to 2023.
- 2021. Company E: \(600 * 20\% = 120\). Company C: \(700 * 15\% = 105\). 120 > 105.
- 2022. Company E: \(650 * 18\% = 117\). Company C: \(750 * 14\% = 105\). 117 > 105.
- 2023. Company E: \(700 * 16\% = 112\). Company C: \(800 * 13\% = 104\). 112 > 104.
So, this statement is true.
3. Company C's profit margin decreased every year from 2021 to 2023. The company's profit margins for years 2021, 2022, and 2023 are 15%, 14%, and 13%, respectively. This is strictly decreasing. So, this statement is true.
4. The company with the fewest employees in 2021 had the lowest revenue. Company B had the fewest employees in 2021, 800, and had the lowest revenue - 300. So, this statement is true.
2. Company E had the highest profit in all three years. Profit is revenue multiplied by profit margin. Companies A, B, and D have less revenue and profit margin than company E for all 3 years. Let's compare company E's profit with company C's profit across 2021 to 2023.
- 2021. Company E: \(600 * 20\% = 120\). Company C: \(700 * 15\% = 105\). 120 > 105.
- 2022. Company E: \(650 * 18\% = 117\). Company C: \(750 * 14\% = 105\). 117 > 105.
- 2023. Company E: \(700 * 16\% = 112\). Company C: \(800 * 13\% = 104\). 112 > 104.
So, this statement is true.
3. Company C's profit margin decreased every year from 2021 to 2023. The company's profit margins for years 2021, 2022, and 2023 are 15%, 14%, and 13%, respectively. This is strictly decreasing. So, this statement is true.
4. The company with the fewest employees in 2021 had the lowest revenue. Company B had the fewest employees in 2021, 800, and had the lowest revenue - 300. So, this statement is true.
