A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statement is true?
A) The firm generates $160,000 in profit from 80% of its products.
B) The firm generates $128,000 in profit from 80% of its products.
C) The firm generates $128,000 in profit from 20% of its products.
D) The firm generates $80,000 in profit from 20% of its products.
E) The firm generates $64,000 in profit from 20% of its products.

Question

Quizplus · Accepted Answer

According to the 80/20 rule, 80% of the firm's profits come from 20% of its products. Therefore, if the firm generates a monthly profit of $160,000, then 80% of that profit, or $128,000, comes from 20% of its products. Option C correctly states that the firm generates $128,000 in profit from 20% of its products.

A Firm Generates a Monthly Profit of $160,000 Dollars