Albion Distributors' Revenues and Expenses for the Fiscal Year Just

question 166

Essay

Albion Distributors' revenues and expenses for the fiscal year just completed were $2,347,000 and $2,189,000, respectively.
a) If in the current year revenues rise by 10% but expense increases are held to 5%, what will be the percent increase in operating profit?
b) If, instead, revenues decline by 10% and expenses are reduced by 5%, what will be the percent change in operating profit?

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Definitions:

Sensation

The method through which our sense organs and nervous system detect and depict energy forms of stimuli from the surroundings.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Transduction

A process by which sensory receptors change physical stimuli into signals that are eventually sent to the brain.

Thalamus

A crucial brain structure acting as a relay station for information between the cerebral cortex and the rest of the body.