A company's current revenue is £1million a year, 10% is profit. If over the next 3 years revenues increase by 10% a year and costs increase by £120000 a year, what will be the profit margin?
6.1
3.2
4.6
-2.1
5.6
I worked it out as Revenues at year 3 are 1.331 million, Costs are 1.26 million and so profit is 0.071 million giving a profit margin of 0.071/1.331 *100= 5.33
Any advice would be appreciated, thanks!
6.1
3.2
4.6
-2.1
5.6
I worked it out as Revenues at year 3 are 1.331 million, Costs are 1.26 million and so profit is 0.071 million giving a profit margin of 0.071/1.331 *100= 5.33
Any advice would be appreciated, thanks!