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If the expenditure of Company X in 2017 and Company Y in 2017 were equal, what was the ratio of their incomes in 2017?

  • A.29:30
  • B.30:29
  • C.28:29
  • D.29:28

Answer: A

Let the equal expenditure for both companies in 2017 be E.

Income = Expenditure × (1 + \(\frac{\text{Profit %}}{100}\)).

For Company X in 2017, Profit = 45%. Income_X = E × (1 + 0.45) = 1.45E.

For Company Y in 2017, Profit = 50%. Income_Y = E × (1 + 0.50) = 1.50E.

Ratio of Incomes (X:Y) = 1.45E : 1.50E = 1.45 : 1.50 = 145 : 150.

Dividing by 5 gives the ratio 29 : 30.

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