Question

For how many years did expenses exceed revenue?

 

• A. 1
• B. 2
• C. 3
• D. 7
• E. 8

Hint:

When comparing two lines on a graph, visually scan for the points where the line you are interested in (in this case, the dashed 'Expenses' line) is vertically above the other line (the solid 'Revenue' line). Mark these points to make counting easier and avoid mistakes.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks us to analyze the provided line graph to determine the number of years in which the company's expenses were greater than its revenue. We need to compare the two lines on the graph: the dashed line representing Expenses and the solid line representing Revenue.
Step 2: Detailed Explanation:
We need to find the years where the data point for Expenses is higher than the data point for Revenue. Let's examine the graph year by year from 2000 to 2009.

2000: Revenue (~10M) > Expenses (~6M)

2001: Revenue (~12M) > Expenses (~10M)

2002: Revenue (~14M) < Expenses (~15M). Here, expenses exceeded revenue.

2003: Revenue (~18M) > Expenses (~12M)

2004: Revenue (~21M) > Expenses (~15M)

2005: Revenue (~24M) > Expenses (~21M)

2006: Revenue (~26M) > Expenses (~24M)

2007: Revenue (~29M) > Expenses (~15M)

2008: Revenue (~26M) < Expenses (~29M). Here, expenses exceeded revenue.

2009: Revenue (~23M) > Expenses (~19M)
The condition "expenses exceed revenue" is met in the years 2002 and 2008.
Step 3: Final Answer:
Counting the number of years where expenses were greater than revenue, we find there are exactly 2 such years. Therefore, the correct answer is 2.