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joydipb01
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GMAT 1: 700 Q49 V36
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SanuBest
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Thank you!
I missed the profit part, was calculating the %increase for revenue instead.
BJ2024
First, let's calculate the profit for each year (Revenue − Cost):
  • 2012: $37.5 - 32.5 = 5$ million
  • 2013: $40.0 - 35.0 = 5$ million
  • 2014: $37.5 - 30.0 = 7.5$ million
  • 2015: $50.0 - 40.0 = 10$ million
  • 2016: $62.5 - 50.0 = 12.5$ million
  • 2017: $65.0 - 50.0 = 15$ million
Next, let's calculate the percentage increase in profit over the prior year:
  • 2013: (5 - 5)/5*100% =0%
  • 2014: (7.5 - 5)/5*100% = 50%
  • 2015: (10 - 7.5)/7.5*100%=33.3%
  • 2016: (12.5 - 10)/10*100% = 25%
  • 2017: (15 - 12.5)/12.5*100%= 20%
Hence, 2014 had the highest percent increase in profit.


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The question has asked greatest percent increase in profit over the prior year
Now, we know that
Profit = Revenue - Cost

For 2014: Revenue - Cost = 37.5 -30 = 7.5
For 2013: Revenue - Cost = 40 - 35 = 5

So, Percentage increase = (7.5-5)/5 x 100 = 50%

As the years are increasing the profits are increasing but the profit % is decreasing

Hence, year is 2014 and percent increase is 50%

Hope it helps
SanuBest
Why 50% and not 33%?
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SanuBest
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Thank you so much!
RahulSax
The question has asked greatest percent increase in profit over the prior year
Now, we know that
Profit = Revenue - Cost

For 2014: Revenue - Cost = 37.5 -30 = 7.5
For 2013: Revenue - Cost = 40 - 35 = 5

So, Percentage increase = (7.5-5)/5 x 100 = 50%

As the years are increasing the profits are increasing but the profit % is decreasing

Hence, year is 2014 and percent increase is 50%

Hope it helps

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