Last year a company made a net profit of $20,000 on sales of $1,000,000. this year they made a net profit of $40,000 on sales of $1,000,000. when talking to the shareholders, they claimed that their profit increased by 100%, and asked for a bonus for doing so well. when talking to the union about a possible wage raise, they claimed that their profit only increased by 2%, which hasn't even kept up with inflation. how did they determine these figures? which one do you think is correct?