The following table embodies the details about the profits (in Rupees Lakhs)…
2024
The following table embodies the details about the profits (in Rupees Lakhs) earned by five Retail Stores A-E during the years 2018-2023. Based on the data in the table, answer the questions that follow.
Store-wise Details of Profit
Store | Profit (in ₹ Lakh) earned in the year 2018 | Profit (in ₹ Lakh) earned in the year 2019 | Profit (in ₹ Lakh) earned in the year 2020 | Profit (in ₹ Lakh) earned in the year 2021 | Profit (in ₹ Lakh) earned in the year 2022 | Profit (in ₹ Lakh) earned in the year 2023 |
A | 12 | 18 | 24 | 21 | 15 | 30 |
B | 9 | 15 | 18 | 12 | 21 | 24 |
C | 27 | 33 | 24 | 21 | 30 | 36 |
D | 15 | 12 | 18 | 9 | 21 | 9 |
E | 18 | 21 | 15 | 15 | 12 | 24 |
Note: Profit = Income – Investment
In the year 2019, to earn a profit of 20%, by each of the stores C and E, what is the ratio of investments made by C to that of E?
- A.
7 : 11
- B.
1 : 5
- C.
5 : 1
- D.
11 : 7
Show answer & explanation
Correct answer: D
From the table, in 2019, Store C earned a profit of ₹33 Lakhs and Store E earned ₹21 Lakhs.
Given a 20% profit margin, Investment = Profit / (Profit % / 100).
For Store C: Investment = 33 / 0.20 = ₹165 Lakhs.
For Store E: Investment = 21 / 0.20 = ₹105 Lakhs.
The ratio of investments (C:E) is 165:105. Simplifying by dividing both by 15 gives the final ratio of 11:7.