A market research agency needs to constantly improve its digital communications to keep up with the competition. In 2017 it spent £250000 on digital communication. In 2018 it spent £525000. The agency's percentage increase in spending on digital communications from 2017 to 2018 was approximately equal to: A) 48% B) 52% C) 110% D) 210%

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A market research agency needs to constantly improve its digital communications to keep up with the competition - OCR - GCSE Business - Question 11 - 2019 - Paper 1

Question 11

A market research agency needs to constantly improve its digital communications to keep up with the competition. In 2017 it spent £250000 on digital communication. I... show full transcript

Worked Solution & Example Answer:A market research agency needs to constantly improve its digital communications to keep up with the competition - OCR - GCSE Business - Question 11 - 2019 - Paper 1

Step 1

Calculate the increase in spending

96%

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Answer

To find the increase in spending from 2017 to 2018, subtract the 2017 spending from the 2018 spending:

ext{Increase} = ext{Spending in 2018} - ext{Spending in 2017} = £525000 - £250000 = £275000

Step 2

Calculate the percentage increase

99%

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Answer

Next, we calculate the percentage increase using the formula:

ext{Percentage Increase} = rac{ ext{Increase}}{ ext{Spending in 2017}} imes 100 = rac{£275000}{£250000} imes 100

Calculating this gives:

ext{Percentage Increase} = 1.1 imes 100 = 110 ext{%}

Step 3

Choose the correct option

96%

101 rated

Answer

The options given were:

A) 48%
B) 52%
C) 110%
D) 210%

The correct option is C) 110%.

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