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 ratio of sales to capital the lowest?
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- 1998
- 1997
- 1996
- 1995
Correct Option: B
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.
