Lenny D. answered • 01/09/20
Financial Professional with many years of Wall Street Experience
| Year 1 | Year 2 | Absolute Change | Relative Change | |
| A | 12.8 | 9.9 | -2.9 | -22.66% |
| B | 25.1 | 46.4 | 21.3 | 84.86% |
| C | 32.8 | 35.6 | 2.8 | 8.54% |
| D | 50.6 | 48.8 | -1.8 | -3.56% |
| E | 33.9 | 53 | 19.1 | 56.34% |
Without knowing what happened to operating revenues we can't really say anything about profitability. If However, we assume no change in revenues we can say something about profit margins.
Tahmid H.
And the question is all regarding 1 company; A, B,C,D and E are all different departments within 1 company.01/09/20
Lenny D.
That sheds a little bit more light on the subject. What we really want to do then is that up the total cost by Department and see what's happened to the share of total cost for each department I can put that together in a spreadsheet with no problem01/09/20
Tahmid H.
Revenues have changed for all departments from year 1 to year 2, but from the point of view of this question as it doesn't mention anything regarding revenue/profits do we have to take the revenue/profits into account, I'm not quite sure. Now A being the lowest, isn't D lower than A as there's been a bigger change in department A -2.9 compared td department D's -1.8m01/09/20
Tahmid H.
So GWE is the name of the company and the full question is as follows: 'To better understand the existing expenses of GWE, RANK ORDER the business areas from highest (1) to lowest (5) in terms of the change in operating expenses from year to year 2' ^That is how its exactly worded.01/09/20
Lenny D.
Best thing to do is put together a spreadsheet and you'll see that yes for division d their share of expenses in year 1 was 32.6 percent and now it drops to 25.19% well division a drop from 8 in a quarter percent to 5.11%.. so ranking it in terms of share of expense. so ranking it in terms of share of expense division Dee has actually been better01/09/20
Lenny D.
Pardon the typos I was dictating over my phone01/09/20
Tahmid H.
From the exactly worded question I stated in the comment before would you advise to answer this question from purely the change in op. Expenses from year 1 to year 2 or should I take into account the Revenue figures also?01/09/20
Tahmid H.
Thank you for your help, very much appreciated!01/09/20
Tahmid H.
I do have all the revenue and sales figures however, the question does not really ask about linking it to profitability. I assume the this question is just asking purely about change in operating expenses, that is what I assume anyways. Do you think that's the case here?01/09/20