Instructions

The graph given below gives the yearly details of money invested in producing a certain product over the years 1991 to 1995. It also gives the profit (in ‘000 rupees).

Question 15

In which year were the overheads, as a percentage of the raw material, maximum?

Solution

Ratio in 1992 = $$\frac{25}{50}$$ = 0.5

Ratio in 1993 = $$\frac{25}{60}$$ = 0.4167

Ratio in 1994 = $$\frac{30}{70}$$ = 0.428

Ratio in 1995 = $$\frac{30}{80}$$ = 0.375

Hence, overheads, as a percentage of raw material, is maximum in 1992.

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