Question

In 2007 - 08 if ABC accounted for 7% of industry turnover and the industry turnover saw a growth of 12 % in 2008-09, what was the approximate growth rate ABC's share in industry turnover in 2008-09 over 2007-08?

• A. +5%
• B. -5%
• C. -28.5%
• D. +28.5%

Answer 1

The correct option is C

-28.5%

Total industry turnover in 2008-09 = 250 $\times$ $\left(\frac{100}{7}\right)$ $\times$ 112 = 4000 Crores.
So percentage share of ABC in 2008-09 = $\left(\frac{200}{4000}\right)$ $\times$ 100 = 5%
So growth rate = $\frac{5-7}{7}$ $\times$ 100 = -28.5%