Question
Download Solution PDFThe bar chart given below shows the ratio of expenditure to revenue for seven consecutive years Y1, Y2, Y3, Y4, Y5, Y6 and Y7.
Revenue for year Y4 is Rs. 22500. What is the profit for year Y4?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFCalculation:
As the given data in bar graph shows the ratio of expenditure to revenue for seven consecutive years
Revenue for year Y4 = Rs. 22500
For Y4, the ratio of expenditure to revenue = 0.9
Ratio of Expenditure to Revenue = 0.9 = 9 : 10
Let expenditure be Rs. 9x and Revenue be Rs. 10x
FORMULA USED:
Profit percentage = [(Revenue – Expenditure)/Expenditure] × 100
Calculations:
According to question,
⇒ 10x = 22500
⇒ x = 2250
⇒ Profit = Revenue - Expenditure
⇒ Profit = = Rs. 10x - Rs. 9x
⇒ Profit = = Rs. x
⇒ Profit = Rs. 2250
∴ The profit for year Y4 is Rs. 2250.
Important Points In this question we have provided the ratio of expenditure to revenue
Case 1 Y4
⇒ Expenditure/Revenue = 0.9
⇒ Expenditure/Revenue = 9/10
It means the numerator part is an expenditure, and the denominator part is revenue.
Profit = Revenue - Expenditure
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