## Quant Quiz On Line Graph DI Day 7 Bag

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*Following line graph shows the ratio of expenditure to income of three companies A, B and C during the period 2008–2013.*

As mentioned above – Reading the headings are important otherwise you will not be able to understand what these lines are all about.

**Please observe that – **Along Y-Axis are the ratios; Along X-Axis are the years; In between are the lines.

*Following Line Graph shows the ratio of expenditure to income of three companies A, B and C.*

Learn a few things from the heading:

**(1)** For Company A in 2008, if Expenditure is Rs 0.9, then Income will be Rs 1, and so on.

**(2)** It’s **Expenditure to Income** Ratio expressed as **E:I** and not Income to Expenditure.

**(3)** To have Profit, Expenditure is to be less than Income. Reverse is for Loss.

**(4)** Profit and Loss percentages are calculated using the formulas for the same.

**Profit**= Income – Expenditure**Profit Percentage**= [Profit/Expenditure]*100**Loss**= Expenditure – Income**Loss Percentage**= [Loss/Expenditure]*100

**(5)** The lower is the E:I ratio, higher is the profit.

The questions of Expenditure and Income seem difficult to solve. But, let’s apply the above mentioned points to solve the questions in no time!

__Steps to Solve__

**Question 1:** In which of the following years is the percentage loss/profit of Company C the maximum?

**[1]** 2008

**[2]** 2009

**[3]** 2010

**[4]** 2011

**[5]** 2012

**Answer 1: Hint:** From point no. 5, we conclude that **profit is maximum when E:I is minimum** which is 0.3 in 2011.

Hence

**answer is [4].**

**Question 2:** If the expenditure of Company A in 2008 and 2009 together is Rs 60 lakhs, then what is its income in 2008 and 2009 together?

**[1]** Rs 120 lakhs

**[2]** Rs 150 lakhs

**[3]** Rs 66.66 lakhs

**[4]** Data inadequate

**[5]** None of these

**Answer 2: Hint: **E:I for Company A in 2008 and 2009 is 0.5 and 0.4. This means for Rs 0.5 Expenditure in 2008, Income is Rs 1 in 2008 and for Rs 0.4 Expenditure in 2009, Income is Rs 1 in 2009. But combined Expenditure of 60 lakhs is given. **So, ratios being different, it’s not possible to calculate the Income from the combined expenditure.**

**Answer is [4].**

**Question 3:** If the expenditure of Company B in 2008 and 2012 together is Rs 60 lakhs then what is its income in 2008 and 2012 together?

**[1]** Rs 66.66 lakhs

**[2]** Rs 75 lakhs

**[3]** Rs 48 lakhs

**[4]** 96 Rs lakhs

**[5]** Data inadequate

**Answer:3 Hint: **E:I for 2008 and 2012 is 0.8 and 0.8. **Ratios being same, combined Income from the combined Expenditure can be calculated. **Income = E/0.8 = 60/0.8 = 75 lakhs.

**Answer is [2].**

**Question 4:** In which of the years does Company C gain 100% profit?

**[1]** 2008

**[2]** 2009

**[3]** 2010

**[4]** 2011

**[5]** None of these

**Answer 4: Hint: For 100% profit, E:I ratio must be 0.5** so that I = E/0.5 = 2E. It’s in 2009.

**Answer is [2]**

**Question 5:** What is the percentage decrease in the percentage profit of Company C from 2009 to 2010?

**[1]** 75%

**[2]** 300%

**[3]** 62.5%

**[4]** 160%

**[5]** None of these

**Answer 5:Hint: **E:I of Company C in 2009 = 0.5:1

Profit = 1-0.5 = 0.5

Percentage profit of profit of Company C in 2009 =[0.5/0.5]*100 = 100%

E:I of Company C in 2010 = 0.8:1

Profit = 1-0.8 = 0.2

Percentage profit of profit of Company C in 2009 =[0.2/0.8]*100 = 25%

Percentage decrease = 75%.

**Answer is [1].**

**Directions (1-5): Study the following graph carefully to answer these question.**

**Profit Earned = Total income – Total Investment in the year**

**Per cent profit earned by two companies producing electronic goods over the years**

**Q1. If the profit earned in 2006 by Company B was Rs. 8,12,500, what was the total income of the company in that year?**

**Q2. If the amount invested by the two companies in 2005 was equal, what was the ratio of the total income of the company A to that of B in 2005?**

**Q3. If the amount of profit earned by Company A in 2006 was Rs. 10.15 Lakhs, what was the total investment?**

**Q4. If the amount invested by Company B in 2004 is Rs. 12 Lakhs and the income of 2004 is equal to the investment in 2005, what is the amount of profit earned in 2005 by Company B?**

**Q5. If each of the companies A and B invested Rs. 25 Lakhs in 2010, what was the average profit earned by the two companies?**