Comprehension

A company’s expenses in 2011 are divided as follows: Salaries 40%, Rent 20%, Utilities 15%, Marketing 15%, Miscellaneous 10%. Total expenses are Rs. 500 lakh.

Question: 1

What is the amount spent on Salaries?

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For pie chart calculations, multiply the percentage (as a decimal) by the total amount and verify.
Updated On: Aug 11, 2025
  • Rs. 180 lakh
  • Rs. 190 lakh
  • Rs. 200 lakh
  • Rs. 210 lakh
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The Correct Option is C

Solution and Explanation

Step 1: Identify Salaries percentage.
Salaries = 40%.

Step 2: Calculate amount.
Total expenses = Rs. 500 lakh.
Salaries = 40% × 500 = (40 ÷ 100) × 500 = 0.4 × 500 = 200 Rs. lakh.

Step 3: Verify.
0.4 × 500 = 200.
Alternatively, 40% = 2/5, so (2/5) × 500 = 200.

Step 4: Check options.
Options: (1) 180, (2) 190, (3) 200, (4) 210.
Our result matches Option (3).

Step 5: Cross-check.
Total expenses = 500, 40% = 200. No calculation errors.

Step 6: Conclusion.
Option (3) is correct — Salaries amount = 200 Rs. lakh.
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Question: 2

What is the combined amount spent on Rent and Utilities?

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For combined percentages, sum the percentages first, then multiply by the total.
Updated On: Aug 11, 2025
  • Rs. 165 lakh
  • Rs. 175 lakh
  • Rs. 185 lakh
  • Rs. 195 lakh
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The Correct Option is B

Solution and Explanation

Step 1: Identify percentages.
Rent = 20%, Utilities = 15%.
Combined percentage = 20 + 15 = 35%.

Step 2: Calculate amount.
Total expenses = Rs. 500 lakh.
Combined = 35% × 500 = (35 ÷ 100) × 500 = 0.35 × 500 = 175 Rs. lakh.

Step 3: Alternative method.
Rent = 20% × 500 = 100 Rs. lakh.
Utilities = 15% × 500 = 75 Rs. lakh.
Total = 100 + 75 = 175 Rs. lakh.

Step 4: Verify.
0.35 × 500 = 175.
Recalculation using individual components: 100 + 75 = 175.

Step 5: Check options.
Options: (1) 165, (2) 175, (3) 185, (4) 195.
Our result matches Option (2).

Step 6: Conclusion.
The combined amount for Rent and Utilities = 175 Rs. lakh.
Therefore, the correct answer is Option (2).
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Question: 3

If Miscellaneous expenses increase by 50 %, what is the new amount?

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For percentage increase in pie charts, calculate the original amount, then apply the increase formula.
Updated On: Aug 11, 2025
  • Rs. 60 lakh
  • Rs. 65 lakh
  • Rs. 70 lakh
  • Rs. 75 lakh
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The Correct Option is D

Solution and Explanation

Step 1: Identify Miscellaneous expenses.
Miscellaneous = 10% of 500 = 0.1 × 500 = 50 Rs. lakh.

Step 2: Calculate increase.
A 50% increase means new amount = 150% × 50 = (1.5 × 50) = 75 Rs. lakh.

Step 3: Alternative method.
Increase = 50% × 50 = 0.5 × 50 = 25 Rs. lakh.
New amount = 50 + 25 = 75 Rs. lakh.

Step 4: Verify.
1.5 × 50 = 75.
Percentage check: (25 ÷ 50) × 100 = 50%.

Step 5: Check options.
Options: (1) 60, (2) 65, (3) 70, (4) 75.
Our answer matches Option (4).

Step 6: Conclusion.
The new Miscellaneous expenses after a 50% increase = 75 Rs. lakh.
Correct answer: Option (4).
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Question: 4

What is the ratio of Marketing to Salaries expenses?

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For ratio questions, calculate amounts and simplify the fraction, ensuring the correct option is selected.
Updated On: Aug 11, 2025
  • 2:5
  • 3:8
  • 3:7
  • 3:5
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The Correct Option is B

Solution and Explanation

Step 1: Calculate amounts.
Marketing = 15% × 500 = 0.15 × 500 = 75 Rs. lakh.
Salaries = 40% × 500 = 0.40 × 500 = 200 Rs. lakh.

Step 2: Find ratio.
Ratio of Marketing to Salaries = 75 : 200.

Step 3: Simplify.
(75 ÷ 25) : (200 ÷ 25) = 3 : 8.

Step 4: Verify.
75 ÷ 25 = 3, and 200 ÷ 25 = 8, confirming the ratio is 3:8.

Step 5: Conclusion.
The simplified ratio is 3:8 — matches Option (2).
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