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A company made a profit of $238 000. This represents a 10% profit increase compared to the previous year.To the nearest dollar, the profit in the previous year was

Question

A company made a profit of $238 000. This represents a 10% profit increase compared to the previous year.To the nearest dollar, the profit in the previous year was

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Solution

To find the profit of the previous year, we need to understand that the $238,000 is 110% of the previous year's profit (100% of the original profit plus the 10% increase).

Step 1: Set up the equation. Let X be the profit from the previous year. We know that 110% of X is equal to $238,000. This can be written as:

1.10 * X = $238,000

Step 2: Solve for X. To do this, divide both sides of the equation by 1.10:

X = $238,000 / 1.10

Step 3: Calculate the value of X.

X = $216,363.64

So, the profit in the previous year was approximately $216,364 when rounded to the nearest dollar.

This problem has been solved

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