Study the following graph carefully and answer questions given below it. Percentage profit earned by two companies A and B over the years.
% $$\text{Profit} = \frac{\text{Income - Expenditure}}{\text{Expenditure}} \times 100$$
If the incomes of Company B in 2002 and 2003 were in the ratio of 3:4 respectively, what was the respective ratio of expenditures of that company in these two years ?
Let income of company B in 2002 = Rs. $$3x$$ lakhs
=> income of company B in 2003 = Rs. $$4x$$ lakhs
Let expenditures of company B in 2002 and 2003 respectively = $$E_1$$ and $$E_2$$
Profit % in 2002
=> $$\frac{3x - E_1}{E_1} \times 100 = 45$$
=> $$300x - 100 E_1 = 45 E_1$$
=> $$300x = 45 E_1 + 100 E_1 = 145 E_1$$
=> $$E_1 = \frac{300x}{145} = \frac{60x}{29}$$
Profit % in 2003
=> $$\frac{4x - E_2}{E_2} \times 100 = 55$$
=> $$400x - 100 E_2 = 55 E_2$$
=> $$400x = 55 E_2 + 100 E_2 = 155 E_2$$
=> $$E_2 = \frac{400x}{155} = \frac{80x}{31}$$
$$\therefore$$ $$\frac{E_1}{E_2} = \frac{\frac{60x}{29}}{\frac{80x}{31}}$$
= $$\frac{60}{29} \times \frac{31}{80} = 93 : 116$$
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