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Question
If Operating Profit is defined as Revenue - Expenses and OPM (Operating Profit Margin) as the Operating Profit as a percentage of Revenue, then which of the following statements is true?
Options:
A .  The OPM for 1999 was greater than that for 2000
B .  The OPM for 2000 was greater than that for 1999
C .  The OPM for year 1999 and 2000 was equal
D .  Data insufficient
Answer: Option B
:
B
Conventional Approach
Here we have to compare the ratios 5184/13386, 2318/6049, i.e. we have to compare 51.84% of 6049 and 23.18% of 13386.
50% of 6049 is 3024.5; 1% of 6049 is 60.49; 0.8% of 6049 is 48.392; 0.05% of 6049 is 3.0245. Thus, 51.85% of 6049 is 3024.5 + 60.49 + 48.392 + 3.02 = 3136.4.
Similarly, 20% of 13386 is 2677.2; 3% of 13386 is 401.58; 0.1% of 13386 is 13.386, and 0.08% is 10.708 and thus 23.18% of 13386 is 2677.2 + 401.58 + 13.38 + 10.70 = 3102.86.
Thus, the first ratio is greater and thus OPM of 2000 is greater than that for 1999.
Shortcut
Cut down the number of digits. (OPM)99 =13813=513 and (OPM)2000 =633=36 or 12. Thus you can directly see that 12 is greater than 513.

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