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Let's analyze the question step by step:

1. The average annual revenue from 2008 to 2011 was £250 million.
2. The average annual revenue from 2008 to 2013 was 4% higher than the previous period. This means that the average revenue from 2008 to 2013 was \( 250 \times 1.04 = 260 \) million.
3. In 2013, the revenue was 17% lower than in 2012. So, the 2013 revenue is \( R_{2012} \times (1 - 0.17) = 0.83 \times R_{2012} \).

We can now solve for \( R_{2012} \):

- The total revenue for 2008 to 2013 is made up of:
  - Four years at £250 million (2008-2011).
  - Two years of unknown values for 2012 and 2013.

Thus, the equation for the average over 6 years is:
\[
\frac{4 \times 250 + R_{2012} + 0.83 \times R_{2012}}{6} = 260
\]

Now, solving for \( R_{2012} \).

\[
\frac{1000 + R_{2012} + 0.83 \times R_{2012}}{6} = 260
\]
\[
1000 + 1.83 \times R_{2012} = 1560
\]
\[
1.83 \times R_{2012} = 560
\]
\[
R_{2012} = \frac{560}{1.83} \approx 306.6
\]

Rounding this to the nearest ten million gives us approximately **£310 million**.

Thus, the correct answer is **E. £310m**.

Would you like further clarification, or have any additional questions? Here are five related questions for practice:

1. What would the 2012 revenue be if the 2013 revenue were 20% lower than in 2012?
2. How would you adjust the formula if the average revenue for 2008-2011 was £300m?
3. What would the average revenue have been if the 2013 revenue was 10% higher than in 2012?
4. How would the calculations change if the number of years in the first period was five, not four?
5. What is the revenue difference between 2012 and 2013 in absolute terms?

**Tip:** When solving revenue questions involving percentages, always write out the percentage changes as decimals and focus on setting up a clear equation to solve for the unknown values.

The average annual revenue of a company in the four years to 2011 was £250m. If the average annual revenue of the same company in the six years to 2013 was 4% higher, and the revenue in 2013 was 17% lower than in 2012, what is the 2012 revenue (to the nearest ten millions)?

Solve a revenue calculation problem where the average revenue from 2008 to 2013 is 4% higher than 2008 to 2011, and the revenue in 2013 is 17% lower than in 2012. Learn how to calculate the 2012 revenue step by step.

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