Question

You are the manager of the Advertising division of the TLN group. By what percent would you need to increase your division’s Year 2 (total $5 million and advertising percent 32%) revenue to reach $3 million in Year 3 ?

Answer 1

Solution :-

Total revenue of the company = $5000000

Percentage of Advertising Division = 32 %

Revenue generated by Advertising Division = (5000000*32)/100

= $1600000 

So,revenue of $1600000 was generated by the Advertising Division in year 2 out of the total revenue of $5000000

Now, the revenue is to be increased to $3000000 in year 3.

Difference between the revenues year 3 and the revenue of year 2

= $3000000 - $1600000

= $1400000

Percentage to be increased = (1400000*100)/1600000

⇒ 140000000/1600000

⇒ 87.5 %

So, advertising revenue should be increased by 87.5 % to reach $3000000 in year 3.

Answer.