Introduction to Data Interpretation


Introduction to 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. View Hint View Answer Discuss in Forum

    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. View Hint View Answer Discuss in Forum

    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. View Hint View Answer Discuss in Forum

    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. View Hint View Answer Discuss in Forum

    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. View Hint View Answer Discuss in Forum

    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.