Out of the two bar graphs provided below, one shows the amounts (in Lakh Rs.)…
2025
Out of the two bar graphs provided below, one shows the amounts (in Lakh Rs.) invested by a Company in purchasing raw materials over the years, and the other shows the values (in Lakh Rs.) of finished goods sold by the Company over the years.
Amount invested in Raw Materials (Rs. in Lakhs)
Value of Sales of Finished Goods (Rs. in Lakhs)
In which year, there has been a maximum percentage increase in the amount invested in Raw materials as compared to the previous year?
- A.
1996
- B.
1997
- C.
1998
- D.
1999
Attempted by 1 students.
Show answer & explanation
Correct answer: A
Percentage increase over the previous year is calculated using the standard percentage-change formula: percentage increase = [(this year's value − previous year's value) ÷ previous year's value] × 100. To find the year of maximum percentage increase, this formula must be applied to each consecutive pair of years and the resulting percentages compared directly — a larger absolute (Rupee) rise does not necessarily mean a larger percentage rise, since the base amount differs from year to year.
1996 vs 1995: investment rose from Rs. 120 Lakh to Rs. 225 Lakh → increase = (225 − 120) ÷ 120 × 100 = 87.5%.
1997 vs 1996: investment rose from Rs. 225 Lakh to Rs. 375 Lakh → increase = (375 − 225) ÷ 225 × 100 = 66.67%.
1998 vs 1997: investment fell from Rs. 375 Lakh to Rs. 330 Lakh — this is a decrease, so 1998 is not a candidate for maximum increase.
1999 vs 1998: investment rose from Rs. 330 Lakh to Rs. 525 Lakh → increase = (525 − 330) ÷ 330 × 100 = 59.09%.
2000 vs 1999: investment fell from Rs. 525 Lakh to Rs. 420 Lakh — another decrease, so 2000 is not a candidate either.
Comparing the three genuine increases — 87.5% (1996), 66.67% (1997), and 59.09% (1999) — 87.5% is the largest, even though 1999's absolute Rupee rise (Rs. 195 Lakh) is bigger than 1996's absolute rise (Rs. 105 Lakh); percentage change is measured against each year's own base, not the absolute Rupee amount, so the bigger Rupee jump does not win here.
Hence, the amount invested in raw materials shows the maximum percentage increase in 1996.