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Brumley Tools saw revenue fall 10% last year while its operating margin rose from 20% to 24%. By what percentage did operating profit change?

  1. A. +10%
  2. B. -6%
  3. C. +8%Correct
  4. D. +20%

Takeaway. When a result is a product of drivers, convert each driver's change to a factor and multiply; adding percentages only works when the changes are small.

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