### IIFT 2018 Question 11

Instructions

Based on the information answer the questions which follow.
IBM is one of the most valuable technology brand in the world. Visualizing the trends, IBM has added and dropped business segments across years. For example, "Technology Services and Cloud Platforms (TSCP)" which started in 2015 only, generated a revenue of approximately 34280 million U.S. Dollars in 2017. Table shows the Global Revenue generated by IBM in nine different segments of its business from 2010 to 2017 in millions USD.

Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â IBM's Golbal Revenue from 2010 to 2017 (in millionsÂ  U.S. Dollars)

TSCP-Technology Services & Cloud Platforms. CS-Cognitive Solutions, GBS-Global Business Services, SYS-Systems, GF-Global Financing, Other. SOFT-Software. GTS-Global Technology Services and S&T-Systems and Technology

Question 11

# The profit booked by IBM in year 2012 is USD 49 billion. Considering equal percentage profit margins across all segments, then approximate profit made by 'Systems and Technology' in millions USD is

Solution

Revenue in 2012 = 18570 + 2010 + 580 +Â  25450 + 40240 + 17670 = 104520 = 104.52 billion
Profit % =Â $$\frac{49}{104.52-49}\times\ 100\ =\ 88.26\%\$$
Let theÂ profit made by Systems and Technology in 2012 be 'x'
$$\frac{x}{17670-x}=\frac{49}{55.52}$$
x = 8283.87