Percentage production of B type cars in 1997 = that in 1996 (given)
= (40 ? 15) 25% of 520000 = 130000.
Clearly, by visual inspection D is the desired option.
Ratio of sales to capital = Sales in a year / Capital in a year
Solve the question with the help of option one by one.
Option(A)
Ratio of sales to capital in 1998 = Sales in 1998 / Capital in 1998
Ratio of sales to capital in 1998 = 800 / 200 = 4
Similarly Option(B)
Ratio of sales to capital in 1997 = Sales in 1997 / Capital in 1997
Ratio of sales to capital in 1997 = 400 / 200 = 2
Similarly Option(C)
Ratio of sales to capital in 1996 = Sales in 1996 / Capital in 1996
Ratio of sales to capital in 1996 = 300 / 100 = 3
Similarly Option(D)
Ratio of sales to capital in 1995 = Sales in 1995 / Capital in 1995
Ratio of sales to capital in 1995 = 500 / 100 = 5
As we see in all option , The ratio value is lowest for the year 1997. So answer will be 1997.
As we know the formula,
Profit = Sales - Expenses
Solve option one by one.
Option (A) in year 1998
Profit in year 1998 = Sales in 1998 - Expenses in 1998
Profit in year 1998 = 800 - 700 = 100
Capital in year 1998 = 200 (As per given graph)
Ratio of profit to capital in year = 100 / 200 = 0.5
Similarly Option (B) in year 1995
Profit in year 1995 = Sales in 1995 - Expenses in 1995
Profit in year 1995 = 500 - 400 = 100
Capital in year 1995 = 100 (As per given graph)
Ratio of profit to capital in year = 100 / 100 = 1
Similarly Option (C) in year 1996
Loss in year 1996 = Sales in 1996 - Expenses in 1996
Loss in year 1996 = 500 - 400 = 100
Profit in year 1996 = 500 - 400 = - 100
Capital in year 1996 = 100 (As per given graph)
Ratio of profit to capital in year = - 100 / 100 = -1
Similarly Option (D) in year 1997
Loss in year 1997 = Sales in 1997 - Expenses in 1997
Loss in year 1997 = 600 - 400 = 200
Profit in year 1997 = 600 - 400 = - 200
Capital in year 1997 = 200 (As per given graph)
Ratio of profit to capital in year 1997 = Profit / Capital
Ratio of profit to capital in year 1997 = - 200 / 200 = -1
As we can see the year 1995 has the highest ratio for Profit to capital.
Expenditure increased = Expenditure in 1997 ? 98 - Expenditure in 1993 ? 94
Expenditure increased = 8800 ? 5100 = 3700.
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