Direction: The following graph gives Sales, Expense and Capital of a company for a period of five years –1994 to 1998. Read the graph and answer questions.
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In which year was the sales-to-expense ratio the lowest?
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- 1995
- 1996
- 1997
- 1998
Correct Option: C
| The sales-to-expense ratio = | Sales in the given year |
| Expense in the given year | |
Calculate the ratio from given option one by one.
In 1995
| The sales-to-expense ratio = | Sales in the year 1995 |
| Expense in the year 1995 | |
Put the value from given graph,
| The sales-to-expense ratio = | 500 |
| 400 | |
| The sales-to-expense ratio = | 5 |
| 4 | |
Similarly in 1996
| The sales-to-expense ratio 1996 = | 300 |
| 400 | |
| The sales-to-expense ratio 1996 = | 3 |
| 4 | |
Similarly in 1997
| The sales-to-expense ratio 1997 = | 400 |
| 600 | |
| The sales-to-expense ratio 1997 = | 2 |
| 3 | |
Similarly in 1998
| The sales-to-expense ratio 1998 = | 800 |
| 700 | |
| The sales-to-expense ratio 1998 = | 8 |
| 7 | |
As we can see that the least ration is in year 1997.
