Question
A company has only two divisions: Division A and Division B. Last year, Division A made 60% of the company's total revenue and Division B made 40% of the total revenue. This year, Division A's revenue has decreased by 35% and Division B's revenue has decreased by 5%. Which division had higher revenue this year?
Answers
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To simplify the calculation, let's assume that the company's total revenue last year was $100. Therefore, Division A made $60 (60% of $100) and Division B made $40 (40% of $100).
This year, Division A's revenue decreased by 35%, which means it made only 65% of its revenue from last year: 60% - (35% of 60%) = 39%. So, Division A made $39 out of the total revenue this year.
Similarly, Division B's revenue decreased by 5%, which means it made 95% of its revenue from last year: 40% - (5% of 40%) = 38%. So, Division B made $38 out of the total revenue this year.
Therefore, Division A had slightly higher revenue this year, with $39 compared to Division B's $38.
This year, Division A's revenue decreased by 35%, which means it made only 65% of its revenue from last year: 60% - (35% of 60%) = 39%. So, Division A made $39 out of the total revenue this year.
Similarly, Division B's revenue decreased by 5%, which means it made 95% of its revenue from last year: 40% - (5% of 40%) = 38%. So, Division B made $38 out of the total revenue this year.
Therefore, Division A had slightly higher revenue this year, with $39 compared to Division B's $38.