Study the following graph carefully to answer the questions.
Percent Profit Earned by Two Companies Producing Electronic Goods over the Years
percent profit =$$\frac{Profit Earned}{Total Investment}\times100$$
Profit Earned = Total Income - Total Investment in the year
If the amount invested by the two Companies in 2005 was equal, what was the ratio between total income in 2005 of the Companies A and B respectively?
Solution
Let the investment of each company be I.
Income of A = Profit earned + I
= I * percent profit/100 + I = .7I + I = 1.7 I
Income of B = Profit earned + I
= I * percent profit/100 + I = .55 I + I = 1.55I
Ratio = 1.7 : 1.55 = 34 : 31
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