Question

In which year, the percentage change (compared to the previous year) in the investment on Raw materials is same as that in the value of sales of finished goods?

• A. 1996
• B. 1997
• C. 1998
• D. 1999

Answer 1

The correct option is B 1997

The percentage change in the amount invested in raw-materials and in the value of sales of finished goods for different years are:
Percentage change in Amount invested in raw-material:
For 1996 $=[\frac{(225-120)}{120}\times 100]$% = 87.5%
For 1997 $=[\frac{(375-225)}{225}\times 100]$% = 66.67%
For 1998 $=[\frac{(330-375)}{375}\times 100]$% = -12%
For 1999 $=[\frac{(525-330)}{330}\times 100]$% = 59.09%
For 2000 $=[\frac{(420-525)}{525}\times 100]$% = -20%
Percentage change in value of sales of finished goods:
For 1996 $=[\frac{(300-200)}{120}\times 100]$% = 50%
For 1997 $=[\frac{(500-300)}{300}\times 100]$% = 66.7%
For 1998 $=[\frac{(400-500)}{500}\times 100]$% = -20%
For 1999 $=[\frac{(600-400)}{400}\times 100]$% = 50%
For 2000 $=[\frac{(460-600)}{600}\times 100]$% = -23.33%
Thus, the percentage difference is same during the year 1997.