For Company B, if the income in the year 2018 was equal to the expenditure in…
2024
For Company B, if the income in the year 2018 was equal to the expenditure in the year 2020, then what was the ratio of income of B in 2018 to that in 2020?
Answer: A. 2:3 — ConceptProfit percentage is calculated on expenditure: Profit % = (Income − Expenditure) / Expenditure × 100. Thus, for expenditure E and profit rate p%,…
- A.
2:3
- B.
3:2
- C.
2:5
- D.
5:2
Show answer & explanation
Correct answer: A
Concept
Profit percentage is calculated on expenditure: Profit % = (Income − Expenditure) / Expenditure × 100.
Thus, for expenditure E and profit rate p%, income is E × (1 + p/100). When two quantities share a common base, their ratio is found after expressing both in terms of that base.
Application
From the table, Company B earned a 50% profit in 2020. Let its expenditure in 2020 be x.
The condition gives income in 2018 = expenditure in 2020 = x.
Income in 2020 = x × (1 + 50/100) = 3x/2.
Therefore, income in 2018 : income in 2020 = x : 3x/2 = 2 : 3.
Cross-check
Taking x = 100 gives the two incomes as 100 and 150; 100 : 150 simplifies to 2 : 3.
The required ratio is 2 : 3.