Study the chart and answer the questions The retained profit in 1991-92, as…
2024
Study the chart and answer the questions
The retained profit in 1991-92, as compared to that in 1990-91 was:
- A.
Higher by 2.5 %
- B.
higher by 1.5%
- C.
lower by 2.5 %
- D.
lower by 1.5%
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Show answer & explanation
Correct answer: D
Answer: lower by approximately 1.5%.
Retained profit in 1990-91 = 25% of 130 lakh = 32.5 lakh.
Retained profit in 1991-92 = 20% of 160 lakh = 32 lakh.
Change = 32 − 32.5 = −0.5 lakh (a decrease of 0.5 lakh).
Percentage decrease = (0.5 / 32.5) × 100 ≈ 1.538% ≈ 1.5%.
Therefore, the retained profit in 1991-92 compared to 1990-91 was lower by about 1.5%.