# Calculate total revenue

I need help on this question. Thanks in advance!

my calculation is like this: Percentage difference: 31-27=4

4% = £50,000 100% = £1.25mil

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Given

• (1) $revenue*0.27 = profit$

• (2) $revenue*0.31 = salaries$

• (3) $profit + 50000 = salaries$ (since salaries has higher allocated %)

You can substitute the left side of (3) for $salaries$ in (2), then solve for $profit$:

• $revenue*0.31 = profit + 50000$

• $profit = revenue*0.31 - 50000$

Now, set this and (1) equal to each other and solve for $revenue$

• $revenue*0.31 - 50000 = revenue*0.27$

WolframAlpha says revenue is about 1,250,000

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Ahh, homework ;)

• Sanity check year 3: 20%+22%+31%+27% = 100%
• Salaries: 31%, Profit: 27%. Salaries - Profit = 4%.
• 4% -> 50k GBP
• Question reformulated: if 4% are 50k GBP, how much are 100%?
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£1.25mil for 100%, so may I know how to find revenue? it's a numerical test that I am preparing for interview :( –  Alvin Feb 1 '11 at 3:39
I'd say that "allocation of sales revenue" on top just might mean: "this is how our revenue was distributed". So, in my mind, 100% would be your answer. –  Leonidas Feb 1 '11 at 3:47
ok thanks for the explanation. 100% would be £1.25mil, there's no options for this answer. –  Alvin Feb 1 '11 at 3:53
Judging from the comma to separate the thousands in your posted picture, there is a 0 missing at the 4th answer. Which then should be the correct one. Kick the programmer ;) –  Leonidas Feb 1 '11 at 4:08

So what was the percentage difference between profit and salaries that year?

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