If a department makes a profit of 30% on turnover of £85,000, what percentage profit can be expected if overheads increase by £10,000 but other factors remain unchanged?

A – 5%
B – 10%
C – 14%
D – 18%
e – 25%

please explain, this is the last q on a practice psychometric test I am doing fot tomorrow and its got me flummoxed!! i am sure its straight forward?

D

30% of £85k is £25.5k.

Increase in costs of £10k means profit is £15.5k.

£15.5k is ~18% of £85k

30% of 85000 = 25500.

Overheads increase by 10000 so your profit = 25500 – 10000 = 15500.

15500 / 85000 = 18%

f – 42%

18%

ahh, gotcha, I think I have been at these too long, my brain is mush.

85 * 0.3 = 25.5

25.5 – 10 = 15.5

15.5 / 85 = 0.18

D

Edited to say never respond to a maths question on STW unless you’re sure you opened the thread immediately after it was posted!

Yes