If the ratio of expenditures of Company A in 2019 and 2023 is 4: 3, then the…

Concept

Profit percentage measures profit relative to expenditure: Profit % = ((Income - Expenditure) / Expenditure) × 100.

Therefore, if expenditure is E and profit is p%, income is E × (100 + p) / 100. To compare two incomes, first express both on one common scale.

Application

1. Let Company A expenditure in 2019 and 2023 be 4k and 3k respectively, because their ratio is 4:3.

2. In 2019, Company A profit is 25%, so income = 4k × 125/100 = 5k.

3. In 2023, Company A profit is 50%, so income = 3k × 150/100 = 4.5k.

4. The excess of 2019 income over 2023 income is 5k - 4.5k = 0.5k.

5. Required percentage = (0.5k / 4.5k) × 100 = (1/9) × 100 = 100/9%.

Cross-check

A rise of 100/9% multiplies the 2023 income by 1 + 1/9 = 10/9; (10/9) × 4.5k = 5k, which reproduces the 2019 income.

Hence, the income of Company A in 2019 is 100/9% more than its income in 2023.