Multiple choice

Directions: Read the following case and answer the following question. Mr. Krishna has recently acquired four companies namely K-Tea, Kun-Tea, Sun-Tree and Ruk-Money. When the results of the companies for the year 2015-16 were placed before him, he found a few interesting things about them. While the total expenses of Sun-Tree were 5 times its profits, sales of Ruk-Money were three times its profits. While the profits of Sun-Tree and Ruk-Money were same, as the profits of Kun-Tea were 20% of its sales. The total expenses of Sun-Tree were Rs. 100,000. The total expenses of K-Tea were 10% less than those of Sun-Tree. (Profits are defined as the difference between sales and total expenditure) What is the ratio of expenses of Sun-Tree and Ruk-Money during the financial year 2015-16?

  1. 2 : 1

  2. 4 : 3

  3. 5 : 2

  4. 3 : 1
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Sun-Tree expenses = 100,000. Profits = 1/5 * 100,000 = 20,000. Sales = 120,000. Ruk-Money profits = 20,000. Sales = 3 * 20,000 = 60,000. Expenses = Sales - Profits = 60,000 - 20,000 = 40,000. Ratio Sun-Tree:Ruk-Money = 100,000:40,000 = 5:2.

AI explanation

The total expenses of Sun-Tree are Rs. 100,000, which is 5 times its profit, meaning its profit is 100000 divided by 5, or Rs. 20,000. The profit of Ruk-Money is the same as Sun-Tree, so Ruk-Money's profit is also Rs. 20,000. The sales of Ruk-Money are 3 times its profit, so its sales are 3 multiplied by 20000, which equals Rs. 60,000. Using the profit formula of sales minus total expenditure, Ruk-Money's expenses are 60000 minus 20000, or Rs. 40,000; therefore, the ratio of expenses of Sun-Tree to Ruk-Money is 100000 to 40000, which simplifies to 5 : 2.

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