ABC Corporation, a large software developer, is Involved in the creation and sal

Question

ABC Corporation, a large software developer, is Involved in the creation and sales of custom billing software for companies. The figure shows their quarterly sales figures for the last four years. The company's profit is Its total sales minus the cost of pay for salespeople and typical business costs. If salespeople earn 10% of their sales in pay and typical business costs account for 20% of the value of each sale, how much more profit was earned in 2010 than in 2007? a exist4.0 million b exist4.2 million c exist5.0 million d exist6.0 million e exist6.4 million

Explanation / Answer

in 2007 total sale is

14.5+18+16.5+13=62

cost of pay to sales people=10% of 62 =62*10/100=6.2

typical business cost=20%of 62=12.4

total cost=6.2+12.4=18.6

profit in 2007=62-18.6=43.4

in 2010 total sale is 15.5+21+16+15.5=68

cost of pay to sales people=10% of 68 =68*10/100=6.8

typical business cost=20%of 68=13.6

total cost=6.8+13.6=20.4

profit in 2010=68-20.4=47.6

so difference=47.6-43.6=4.2

so answer is b

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