The line graph shows the income and the expenditure (in Rs lakh) of a firm from 2017 to 2021. Profit = Income − Expenditure.
In which year was the profit, as a percentage of the expenditure, the highest?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 2018
For each year, profit \(=\) income \(-\) expenditure, and profit percent \(\displaystyle =\frac{\text{profit}}{\text{expenditure}}\times100\). The year with the largest profit in rupees is not necessarily the one with the highest percentage.
2017: profit \(=50-40=10\); \(\displaystyle \frac{10}{40}\times100=25\%\)
2018: profit \(=60-45=15\); \(\displaystyle \frac{15}{45}\times100=33\frac{1}{3}\%\)
2019: profit \(=64-50=14\); \(\displaystyle \frac{14}{50}\times100=28\%\)
2020: profit \(=72-60=12\); \(\displaystyle \frac{12}{60}\times100=20\%\)
2021: profit \(=80-64=16\); \(\displaystyle \frac{16}{64}\times100=25\%\)
The highest profit percentage, \(33\frac{1}{3}\%\), was in 2018.