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Direction to solve :

01. Which of the following companies had the highest percentage increase in sales from 2001 to 2004?
A. P B. Q
C. R D. S
E. Cannot be determined

Answer and Explanation

Answer: Q

Explanation:
P = 1.25 x 1.4 x 1.1 = 1.925 = 92.5%
=> Q = 1.50 x 1.20 x 1.25 = 2.25 = 125%
=> R = 1.20 x 1.25 x 1.40 = 2.10 = 110%
=> S = 1.20 x 1.10 x 1.30 = 1.716 = 71.6%
=> The highest increase was for company Q.

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02. If the sales of company R in 2001 was Rs. 120 crores, then what was its sales (in Rs. crores) in 2003?
A. 160 B. 172 
C. 180 D. 192
E. 205

Answer and Explanation

Answer: 180

Explanation:
The sales of company R in 2003 was
=> 120 x 1.2 x 1.25 = 180 crores.

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03. If the ratio of the sales of P and S in the year 2000 was 2:1, then what was the ratio of their sales in 2004?
A. 40:27 B. 42:25
C. 39:21 D. 28:13
E. None of these

Answer and Explanation

Answer: 28:13

Explanation:
Let the sales of P and S in 2000 be 200 and 100 respectively. Increase in sales of P from 2000 to 2004 = 200 x 1.2 x 1.25 x 1.4 x 1.1
=> Increase in sales of S from 2000 to 2004
=> = 200 x 1.25 x 1.2 x 1.1 x 1.3
=> Required ratio = 2000 x 1.4 / 100 x 1.3 = 28/13

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04. If the expenses of company R in the year 2001 was 60% of its sales and the expenses increased by 100% form 2001 to 2004, then its profits in 2004, when compared to that in 2001 was.
A. Higher B. Lower
C. Equal D. Either 1 or 3
E. Cannot be determined

Answer and Explanation

Answer: Higher

Explanation:
As the expenses of company R in 2001 was 60% of its sales and it increased by 100% from 2001 to 2004, while the sales increased by 110% in the same period, we can conclude that the profits would have increased from 2001 to 2004

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05. If the ratio of sales of companies Q and R in 2000 was 1: 2, then by what percentage should the sales of company Q grow in 2005, when compared to that in 2004, for the sales of company Q in 2005 to be equal to that of company R in 2004
A. 62 B. 70
C.  78 D. 85
E. 95

Answer and Explanation

Answer:  78

Explanation:
increase in sales of Q from 2000 to 2004 = 1.1 x 1.5 x 1.2 x 1.25 = 2.475
=> 147.5%
=> Increase in sales of R from 2000 to 2004
=> = 1.05 x 1.2 x 1.25 x 1.4 = 2.205 = 120. 5%
=> Had the sales of Q and R in 2000 been 100 and 200 respectively, their sales in 2004 would hav been respectively 247.5 and 441.
=> Sales of company Q has to increase by
=> 441 – 247.5 / 247.5 x 100 = 193.5 / 247.5 x 100
78% in 2005 to match the sales figure of company R in 2004.

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