Instructions

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

Percent Profit = $$\frac{Income-Expenditure}{Expenditure}*100$$

Question 52

Ratio of expenditure of Companies A and B in 2003 was 4 : 5 respectively. What was the respective ratio of their incomes in that year ?

Solution

Let IA be A's income and IB be B's income.

Also let 4x be A's expenditure and 5x be B's expenditure.

From the given formula, For A, % profit = 100* (IA - 4x)/4x

.45 = (IA- 4x)/4x => IA = 4x(1.45)

For B,

% profit = 100* (IB-5x)/5x => .5 = (IB - 5x)/5x

So IB = 5x(1.5)

So the ratio = 4 * 1.45 : 5 * 1.5 = 5.8: 7.5 = 58:75

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