Question

If the incomes of both the Companies in the year 2018 are the same, then what is the ratio of their expenditures?

• A. 7 : 6
• B. 11 : 10
• C. 10 : 11
• D. 13 : 10
• A. 2016
• B. 2017
• C. 2018
• D. 2019

Answer 1

The Correct Option is B

Let income of both companies in 2018 be \( x \). From data: Let Company A's profit percentage = 10%, so \[ x = E_A + 0.1E_A = 1.1E_A \Rightarrow E_A = \frac{x}{1.1} \] Let Company B's profit percentage = 20%, so \[ x = E_B + 0.2E_B = 1.2E_B \Rightarrow E_B = \frac{x}{1.2} \] Now take ratio: \[ \frac{E_A}{E_B} = \frac{\frac{x}{1.1}}{\frac{x}{1.2}} = \frac{1.2}{1.1} = \frac{12}{11} \Rightarrow \frac{11}{10} \]

Answer 2

If expenditure is constant, then lesser the income, lesser the profit. Check income trend for Company D over the years: \[ \text{2016} \rightarrow 260 \quad \text{2017} \rightarrow 240 \quad \text{2018} \rightarrow 220 \quad \text{2019} \rightarrow 200 \quad \] Hence, the income is minimum in 2019, so profit is also minimum.