Question

A company donates to charity every year as its contribution to society. If the company makes a profit in that year, 2/9 of the profit will be allocated for donations. If the company incurs a loss, the company will also allocate 0.05 of the loss for donations. If the company makes a profit of $43.2 million in a certain year and incurs a loss of $2.5 million and $6.5 million respectively in two consecutive years, calculate the total donations the company would have allocated for charity in those three years.​

Answer 1

10.05 million

Explanation:

The computation of the total donations is shown below:

In the first year

= 2 ÷ 9 × $43.2

= 9.6 million

Now donations in the second year

= 0.05 × loss

= 0.05 × $2.5

= 0.125 million

And, in the third year

= 0.05 × 6.5

= 0.325 million

So, the total donations is

= 9.6 + 0.125 + 0.325

= 10.05 million