Question

A company makes a profit of $\$1.38$ million. This is $\$2.54$ million more than last year. What was the profit last year?

Answer 1

The company made a profit of $1.38 million this year, which is $2.54 million more than last year. To find last year's profit, we subtract $2.54 million from $1.38 million, resulting in a loss of $1.16 million for the previous year.

Step-by-step explanation:

To calculate the profit from last year, we subtract the increase in this year's profit from this year's total profit. The company made a profit of $1.38 million this year, which is $2.54 million more than the previous year. The equation to find last year's profit is:

Last year's profit = This year's profit - Increase from last year

Last year's profit = $1.38 million - $2.54 million

Since the increase is more than this year's profit, it implies that last year there was a loss. Subtracting the two amounts, we get:

Last year's profit = -$1.16 million

Therefore, the company had a loss of $1.16 million last year. It's important to note that a negative profit is equivalent to a loss.