# Moderate Pie Charts Solved QuestionData Interpretation Discussion

Common Information

Answer the questions on the basis of the information given below.

The following pie charts give the values of the sales and expenses of five companies — $P, Q, R, S$ and $T$ — as a percentage of the total sales and expenses of these five companies put together.

$\text{Profit = Sales - Expenses}$
$\text{Profit percentage} = \left(\dfrac{\text{Profit}}{\text{Sales}}\right)×100$

 Q. Common Information Question: 1/5 Which of the companies had the highest profit percentage?
 ✔ A. $P$ ✖ B. $Q$ ✖ C. $R$ ✖ D. $\text{Cannot be determined}$

Solution:
Option(A) is correct

If the total sales are $10x$. the sales of different companies are:

$P → 2x$, $Q → 2.5x$, $R →1.5x$, $S →1x$ and $T → 3x$

If the total expenses are $10y$. the expenses of different companies are:

$P →1y$, $Q →2y$, $R → 2.2y$, $S → 1.8y$, $T → 3y$

$\text{Profit = Sales - Expenses}$ and given that no company made a loss, though we can't say which company had the highest profit, using the ratio of (profit/sales) we can say that the profit percentage is highest for $\textbf{P}$.

Alternative solution:

Since,

$\text{Profit percentage} = \left(\dfrac{\text{Profit}}{\text{Sales}}\right)×100$

$= \left(\dfrac{\text{Sales - Expenses}}{\text{Sales}}\right)×100$

$=\left(1-\dfrac{\text{Expenses}}{\text{Sales}}\right)×100$

Profit percentage of the company is highest if its ratio of $\dfrac{\text{Expenses}}{\text{Sales}}$ is least.

This ratio is least for $\textbf{P}$.

## (1) Comment(s)

Shubham
()

Profit percentage = (S-E)/S {ignoring factor of 100}

= 1- (E/S)

Smaller the E/S , bigger the profit percentage.