Answer: -1.16
The "million" part is already taken care of by your teacher.
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Explanation:
x = profit last year (millions of dollars)
x+2.54 = profit this year, which is 2.54 million more than last year
x+2.54 = 1.38
x = 1.38-2.54
x = -1.16
The profit last year was -1.16 million dollars
This is the same as writing -1,160,000 dollars of profit.
A negative profit indicates that the company lost money. This is when the company is spending more than what they earn (i.e. they are in some kind of debt).
