Question

If in the year 2004, the expenditure incurred by company A and B was the same, what was the ratio of the income of company A to that of B in that year?

• A. 27:28
• B. 14:23
• C. 13:19
• D. Cannot be determined
• E. None of these

Answer 1

The correct option is A 27:28

Let the expenditure of companies A and B in 2004 be Rs 1 lakh each.
For company A, $35=\frac{I_1-I}{I}\times 100$
$\Rightarrow 135I=100I_1$ ...(i)
For company B, $40=\frac{I_2-I}{I}\times 100$
$\Rightarrow 140I=100I_2$ ...(ii)
Dividing Eqs. (i) by (ii).
$\frac{I_1}{I_2}=\frac{135}{140}=\frac{27}{28}$