Question : Directions: Study the following graph and answer the given questions.
Amount (Rs. in lakhs) invested in raw materials
Value (Rs. in lakhs) of sales of finished goods
In which year, there has been a maximum percentage increase in the amount invested in raw materials as compared to the previous year?
Option 1: 1996
Option 2: 1997
Option 3: 1998
Option 4: 1999
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Correct Answer: 1996
Solution :
The amount invested in raw materials in 1996 = Rs. 225 lakhs
The amount invested in raw materials in 1995 = Rs. 120 lakhs
Increase = 225 – 120 = Rs. 105 lakhs
In Year 1996,
Percentage increase = $\frac{\text{Increase}}{\text{Amount invested in raw material 1995}}$
= $\frac{105}{120}\times100$
= 87.5%
The amount invested in raw materials in 1996 = Rs. 225 lakhs
The amount invested in raw materials in 1997 = Rs. 375 lakhs
Increase = 375 - 225 = Rs. 150 lakhs
In Year 1997,
Percentage increase = $\frac{\text{Increase}}{\text{Amount invested in raw material 1996}}$
= $\frac{150}{225}\times100$
= 67%
Hence, the correct answer is 1996.
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