## Introduction to Data Interpretation

#### Data Interpretation

Direction: Study the following bar graph and answer the questions.
Gross Profit and Net Profit of a company (in lakh of \$) for the years 1994-1997:

1. For the entire four years as shown, the ratio of total gross profit to total net profit is

1. From the given bar diagram , we see
Total gross profit = 30 + 40 + 45 + 50 = 165
Total net profit = 10 + 15 + 25 + 25 = 75
Required ratio = Total gross profit : Total net profit

##### Correct Option: C

From the given bar diagram , we see
Total gross profit = 30 + 40 + 45 + 50 = 165
Total net profit = 10 + 15 + 25 + 25 = 75
Required ratio = Total gross profit : Total net profit
Required ratio = 165 : 75 = 11 : 5

1. The ratio of gross profit to net profit in a year was greatest in the year

1. On the basis of given graph in question ,
Gross profit in Year 1994 = 30
Net profit in Year 1994 = 10
Ratio = 30 : 10
Gross profit : net profit in Year 1994 ⇒ 3 : 1
Gross profit in Year 1995 = 40
Net profit in Year 1995 = 15
Gross profit : net profit in Year 1995 ⇒ 40 : 15 = 8 : 3
Gross profit in Year 1996 = 45
Net profit in Year 1996 = 25
Gross profit : net profit in Year 1996 ⇒ 45 : 25 = 9 : 5

##### Correct Option: A

On the basis of given graph in question ,
Gross profit in Year 1994 = 30
Net profit in Year 1994 = 10
Ratio = 30 : 10
Gross profit : net profit in Year 1994 ⇒ 3 : 1
Gross profit in Year 1995 = 40
Net profit in Year 1995 = 15
Gross profit : net profit in Year 1995 ⇒ 40 : 15 = 8 : 3
Gross profit in Year 1996 = 45
Net profit in Year 1996 = 25
Gross profit : net profit in Year 1996 ⇒ 45 : 25 = 9 : 5
Gross profit in Year 1997 = 50
Net profit in Year 1997 = 25
Gross profit : net profit in Year 1997 ⇒ 50 : 25 = 2 : 1
Hence , required answer is 1994 .

1. The difference of average gross profit and average net profit calculated for four years is

1. According to given bar graph , we have

 Required difference = \$ 1 (20 + 25 + 20 + 25) lakhs 4

##### Correct Option: D

According to given bar graph , we have

 Required difference = \$ 1 (20 + 25 + 20 + 25) lakhs 4

 Required difference = 1 × 90 = \$ 22.5 lakhs 4

1. The percentage of net profit of 1995 as compared to the gross profit in that year is

1. From the given bar diagram , we see
The net profit in 1995 = 15
The gross profit in 1995 = 40

 Required percentage = The net profit in 1995 × 100 The gross profit in 1995

##### Correct Option: C

From the given bar diagram , we see
The net profit in 1995 = 15
The gross profit in 1995 = 40

 Required percentage = The net profit in 1995 × 100 The gross profit in 1995

 Required percentage = 15 × 100 = 37.5% 40

1. The year in which the gross profit is double the net profit

1. According to given bar graph , we have
In 1997, Gross profit = \$ 50 lakh
Net profit = \$ 25 lakh

##### Correct Option: A

According to given bar graph , we have
In 1997, Gross profit = \$ 50 lakh
Net profit = \$ 25 lakh
Hence , the gross profit is double the net profit in year 1997.