Equation of profit and loss

Reference no: EM13115332

Compute the following:

A company grosses $100 million per year and shows a 12 percent profit. It hires a security director, a security staff, and security equipment, which costs the company $2 million per year but reduces its losses, or "shrinkage," from 9 percent to 5 percent of the gross.

How much money is the company making or losing as a result of installing a security program?

Reference no: EM13115332

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