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Line Charts

The following line graph gives the annual percent profit earned by a Company during the period 1995 - 2000.

Percent Profit Earned by a Company Over the Years.

%Profit = Income - Expenditure x 100
Expenditure

Q1:

During which of the following year was the ratio of income to the expenditure the minimum?

A 1996

B 1997

C 1998

D 1999

ANS:B - 1997

It is given that : % Profit = Income - Expenditure x 100
Expenditure
=>   % Profit = Income - 1
100 Expenditure
=>   Income = % Profit + 1.
Expenditure 100
From this it is clear that the ratio of income to expenditure is minimum for the year in which the % Profit has the minimum value. Since, out of given years (i.e., out of 1996, 1997, 1998, 1999 and 2000), the Company has the minimum % profit in the year 1997. So the minimum ratio of income to expenditure is in the year 1997.



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