Pie Charts
Data Interpretation

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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.

Common information image for Pie Charts, Data Interpretation:1639-1

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

No company made a loss.


Common Information Question: 2/5

For which of the companies is the ratio of expenses to profit, the highest?








$\text{Cannot be determined}$

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Option(B) is correct

The required ratio:

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

$⇒\dfrac{1}{ \left(\dfrac{\text{Sales - Expenses}}{ \text{Expenses}}\right)}$

$⇒ \dfrac{1}{\left(\dfrac{\text{Sales}}{\text{Expenses}} -1\right)}$

Now. the less the value of $\dfrac{\text{Sales}}{ \text{Expenses}} $, the more the required ratio.

⇒ The ratio is the highest for $\textbf{S}$

(2) Comment(s)


if any company is not making loss hence we can take assumption and on basis of it company S has highest ration of expenses to its profit


What a joke!!!! Why complicate a simple calculation!!!

Company S had a highest loss, that is a negative profit. It is -8 (if in considering simple conversion of % to 100

Then the ratio will become (most) negative and hence not a maximun but smallest ratio.

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