Saturday, November 3, 2012

Textbook question 19 a.) pg: 61

A company made a profit of  $8.6 million in the first year. It lost $5.9 million in it's second year and lost another $ 6.3 million in it's third year.

A.) What was the average profit or loss per year over the first three years?

You have to add all of the 3 years profit or loss, then divide it by 3 to get the average profit or loss over the first three years.
 year 1- profit of $8.6 million
 year 2- loss of $5.9 million
 year 3- loss of $6.3 million

so:       8.6+(-5.9)+(-6.3)/3= -1.2 
           This is a loss of 1.2 million on average

-Here is picture of profit loss, the guy asks which way would you prefer your profit, to increase or decrease?

This is my answer on how to do question 19.) a., so basically  you add all the profits or losses then you divide it by the amount of years to get the average profit or loss per year.
- Here is a website, of  how to figure out profit and loss.

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