Instructions

Study the following graph to answer the given question.

% Profit=$$\frac{Income - Expenditure}{Expenditure}\times100$$

Question 145

If the income of the company X in 1998-99 was equal to the expenditure of Company Y in 2001-02, what was the ratio of their respective profits ?

Solution

We use the formula, % profit = 100* (I -E)/E.

Let the Income in 1998 - 99 be x and expenditure e

30 = 100 * (x-E)/E

So, x = 1.3E ... (1)

Profit = Income - Expenditure = 1.3 E - E = .3 E = 3x/13 (From 1)

Let the income for 2001 -02 be I and expenditure = x (same as 1998-99 income)

So,

50 = 100 * (I-x)/x

So, I = 1.5 x

Profit = I - x = .5x

So, the ratio of profits = $$ \frac{3x}{13} \div .5x$$ = 6: 13

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