Instructions

Study the following graph carefully and answer the questions given below it.

Percent profit earned by three companies
A, B and C over the years 1994 to 2000
(Profit = Income - Expenditure)

Question 137

Incomes of Company ‘A’ in 1994 and 1995 were equal. What was the ratio of its expenditure in these two years respectively ?

Solution

Let the income be I.

Let the expenditure in 1994 be E94 and that in 1995 be E95.

Using the formula % p = 100 * (I - E)/E

we get for 1994,

.5 = (I - E94)/E94 => I = 1.5 E94

For 1995,

.7 = (I- E95)/E95 => I = 1.7 E95

So, E94 : E 95 = 17: 15

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