Directions (1 - 8): Study the following graphs carefully and answer the questions that follow:
Percent Profit Earned By Companies A and B Producing Electronic Goods Over The Years.
Percent Profit = $$\left( {\frac{{{\text{Profit Earned}}}}{{{\text{Total Investment}}}} \times 100} \right)\,\% $$
Profit Earned = (Total income ) - ( Total Investment in the Year)
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Examveda
Examveda

If the investment of company A in 2007 and 2008 were equal, what is the difference between the profit earned in the two years if the income in 2008 was Rs. 24 lakh?

A. Rs. 2.25 lakh

B. Rs. 3.6 lakh

C. Rs. 1.8 lakh

D. Rs. 2.6 lakh

E. Rs. None of these

Answer: Option A

Solution(By Examveda Team)

Let the investment of A in 2008 be Rs. $$x$$. Then,
$$\eqalign{ & \left(\frac{160}{100}\times x\right) = 24\text{ lakh} \cr & \Rightarrow x = \left(24\times\frac{5}{8}\right) \text{lakh} \cr & \Rightarrow x = 15 \text{ lakh} \cr} $$
∴ Investment of A in 2008 = 15 lakh
Profit of A in 2008
= Rs. (24 - 15) lakh
= Rs. 9 lakh
Investment of A in 2007
= Investment of A in 2008
= Rs. 15 lakh
Profit of A in 2007
$$\eqalign{ & =\text{Rs.} \left(\frac{45}{100}\times15\text{ lakh}\right) \cr & =\text{Rs.} \frac{27}{4}\text{ lakh} \cr & =\text{Rs. 6.75 lakh} \cr} $$
Difference between the profits of A in 2007 and 2008
= Rs. (9 - 6.75) lakh
= Rs. 2.25 lakh

This Question Belongs to Data Interpretation >> Line Chart

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