Question
The incomes of Nitin and Prakul are in the ratio 3 : 5,
and their expenditures are in the ratio 7 : 12. If Nitin saves 1/4 of his income, what is the ratio of their savings?Solution
Let Nitin's income = 3x and Prakul's income = 5x. Nitin saves 1/4 of his income → savings = (1/4) × 3x = 3x/4 So, his expenditure = 3x - 3x/4 = 9x/4 Expenditure ratio is 7:12 (9x/4) / Prakul's expenditure = 7/12 → Prakul's expenditure = (12 × 9x) / (4 × 7) = 27x / 7 Prakul's savings = 5x - 27x/7 = (35x - 27x)/7 = 8x/7 Nitin's savings = 3x/4 Prakul's savings = 8x/7 Ratio = (3x/4) : (8x/7) = 3/4 ÷ 8/7 = 21:32
Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs
Interest = ₹10 lakhs
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