Instructions
Following expenditure was incurred by a company under different heads:
Question 34
What is the approximate ratio between total tax paid and cost of components over all these years?
Solution
Total taxed over all years = 32.0 + 34.6 + 38.8 + 42.4 + 42.6 = 190.4
Total cost of components = 296 + 332 + 382 + 410 + 428 = 1848
Ratio = $$\dfrac{190.4}{1848}=0.103$$
We have to do a hit-and-trial for each option.
(A) $$\dfrac{1}{117}=0.008$$
(B) $$\dfrac{3}{70}=0.042$$
(C) $$\dfrac{14}{138}=0.101$$
(D) $$\dfrac{12}{141}=0.085$$
The closest is Option (C)
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