The table gives the profits (in rupees lakh) earned by five retail stores A to E during the years 2018 to 2023. Note that Profit equals Income minus Investment, and profit percent means profit as a percentage of investment. The specific profit figures needed are stated within each question below. Based on the data, answer the questions that follow.
In 2019, store C earned a profit of 33 lakh and store E earned a profit of 21 lakh, each at a profit percent of 20% (profit as a percentage of investment). What is the ratio of the investment made by C to that of E?
The ratio of investments C to E is 11 to 7, so that is the answer.
For store C, a profit of 33 at 20 percent of investment gives an investment of 165.
For store E, a profit of 21 at 20 percent of investment gives an investment of 105.
So the investments are 132 and 84 respectively, since income minus profit equals investment.
Actually investment is profit divided by 0.20, giving 165 and 105, but net of profit it is 132 and 84.
The ratio 132 to 84 simplifies to 11 to 7.
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