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: 2/5 For which of the companies is the ratio of expenses to profit, the highest?
 ✖ A. $P$ ✔ B. $s$ ✖ C. $T$ ✖ D. $\text{Cannot be determined}$

Solution:
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)

Sarvesh
()

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

Snehal
()

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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