Question

Using the information of the bar graph given below answer the questions that follow.

Description of cost price of raw material, overhead expenditure and sales of a company X for a product during the given year (in lakhs)

The respective ratio between the percentage profits earned by the company in the years 2004 and 2005 is :

• A. 3 : 7
• B. 4 : 21
• C. 21 : 4
• D. 7 : 24
• E. None of these

Answer 1

The correct option is D

7 : 24

Profit percent of company:
Year 2004
$\Rightarrow \frac{640-(420+180)}{(420+180)}\times 100$
$=\frac{640-600}{600}\times 100=\frac{20}{3}$

Year 2005
$\Rightarrow \frac{860-(520+180)}{(520+180)}\times 100$
$=\frac{860-700}{700}\times 100=\frac{160}{7}$

$\therefore$ Required ratio $=\frac{20}{3}:\frac{160}{7}$ $=7:24$