Data 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.

\[\text{Profit = Sales - Expenses}\]

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

No company made a loss.

Q. |
If the total sales were Rs.800 crore and the overall profit percentage of all the five companies put together was 50%, what were the expenses of company $R$? |

✖ A. |
Rs.60 crore |

✖ B. |
Rs.68 crore |

✖ C. |
Rs.80 crore |

✔ D. |
Rs.88 crore |

**Solution:**

Option(**D**) is correct

Since overall profit percentage is 50% total expenses:

$= \dfrac{50}{100}×800$

$= \text{Rs.400 crore}$

Expenses of company:

$R = \dfrac{22}{100} × 400$

$= \textbf{Rs.88 crore}$

**Chhavi Sahni**

*()
*

It seems that all the confusion is due to WRONG FORMULA.

As question CORRECTLY mentions,

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

Changing denominator from $\text{Sales}$ to $\text{Expenses}$, changes everything.

As I mentioned before as well, profit percentage is calculated on SALES and not on EXPENSES.

Hope this is helpful.

Again, If Sales $= 800$ crore and Profit Percentage $= 50\%$, then by the definition of profit percentage

$\dfrac{\text{Sales - Expenses}}{\text{Expenses}} = 0.50$

Thus,

$\text{Expenses}$ $ = \dfrac{\text{Sales}}{1.5} $$= \dfrac{800}{1.5}$

Thus the expenses of $R = \dfrac{0.22\times 800}{1.5}$