If the expenditure of the company in the year 2006 was 75,000, what was the ratio of income to expenditure of the company in that year?

Question

Direction.
Study the following graph carefully and answer the questions given below it.
% profit Earned by a company over the years Per Cent Profit = (Income Expenditure) / expenditure x 100.

If the expenditure of the company in the year 2006 was 75,000, what was the ratio of income to expenditure of the company in that year?

A. 3 : 2

B. 5 : 4

C. 4 : 3

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Correct Answer :

A. 3 : 2

As per the formula 50

= \frac{I - 75000}{75000}

\Rightarrow 37500 = I - 75000

\Rightarrow I = 112500

Ratio of income to expenditure in 2006 = 112500 : 75000 = 3 : 2
Alternate : Since profit is 50% so required ratio is

\frac{150}{100} = \frac{3}{2}

Answer 1

D. Cannt be determined

If the expenditure of the company in the year 2006 was 75,000, what was the ratio of income to expenditure of the company in that year?

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