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)
What was the difference between the average amount invested in Raw materials during the given period and the average value of sales of finished goods during this period?
- A.
Rs. 62.5 lakhs
- B.
Rs. 68.5 lakhs
- C.
Rs. 71.5 lakhs
- D.
Rs. 77.5 lakhs
Attempted by 1 students.
Show answer & explanation
Correct answer: D
Concept:
The average of a set of values is the sum of the values divided by how many there are: Average = (Sum of values) ÷ (Number of values). To compare two data series recorded over the same years, find each series' own average first, then take the difference between the two averages.
Data from the two graphs:
Year | Raw Materials (Rs. in Lakhs) | Sales of Finished Goods (Rs. in Lakhs) |
|---|---|---|
1995 | 120 | 200 |
1996 | 225 | 300 |
1997 | 375 | 500 |
1998 | 330 | 400 |
1999 | 525 | 600 |
2000 | 420 | 460 |
Application:
Sum of raw materials invested over the six years = 120 + 225 + 375 + 330 + 525 + 420 = 1995 lakhs.
Average raw materials invested = 1995 ÷ 6 = 332.5 lakhs.
Sum of sales of finished goods over the six years = 200 + 300 + 500 + 400 + 600 + 460 = 2460 lakhs.
Average sales of finished goods = 2460 ÷ 6 = 410 lakhs.
Required difference = Average sales − Average raw materials = 410 − 332.5 = 77.5 lakhs.
Cross-check:
As an independent check, find the year-wise difference (sales − raw materials) for each year: 80, 75, 125, 70, 75 and 40. Their sum is 465, and 465 ÷ 6 = 77.5 lakhs — the same result obtained from the two averages, confirming the answer.
Result: The difference between the average amount invested in raw materials and the average value of sales of finished goods over the given period is Rs. 77.5 lakhs.