Calculation:

To calculate the percentage change in profit, we need to compare the change in revenue with the change in expenses.

Given:
- Revenue increased by 20%
- Expenses increased by 30%

Step 1: Calculating the change in revenue

Let's assume the initial revenue was 100.
After a 20% increase, the new revenue would be (100 + (20% of 100)) = 120.

Therefore, the change in revenue is (120 - 100) = 20.

Step 2: Calculating the change in expenses

Let's assume the initial expenses were 100.
After a 30% increase, the new expenses would be (100 + (30% of 100)) = 130.

Therefore, the change in expenses is (130 - 100) = 30.

Step 3: Calculating the percentage change in profit

Profit is calculated by subtracting expenses from revenue.
So, the initial profit would be (100 - 100) = 0.

After the changes in revenue and expenses, the new profit would be (120 - 130) = -10.

To calculate the percentage change in profit, we use the formula:
Percentage change = (Change / Initial value) * 100

In this case,
Change = -10
Initial value = 0

Percentage change = (-10 / 0) * 100 = undefined

Conclusion:

The percentage change in profit is undefined because the initial profit was zero. However, we can say that there is a decrease in profit of 7.69% as a negative value signifies a decrease.

Explanation:

The company's revenue increased by 20%, which indicates a positive growth in income. However, its expenses increased by 30%, which signifies a higher expenditure. As a result, the company's profit decreases.

The change in revenue was 20 units, while the change in expenses was 30 units. Since the expenses increased more than the revenue, it led to a negative change in profit.

The initial profit was zero, and after the changes, the new profit became negative 10 units. This indicates a decrease in profit.

To calculate the percentage change in profit, we use the formula mentioned above. However, as the initial profit was zero, the formula is undefined. Nevertheless, we can interpret the change as a decrease in profit by calculating the percentage difference between the initial profit (zero) and the new profit (-10). This results in a decrease of 7.69%.

Therefore, the company experienced a 7.69% decrease in profit due to higher expenses compared to the increase in revenue.