Over one year a company's sales increased 20% and its expenses decreased 20%. The ratio of sales to expenses at the end of that year was how many times the ratio at the beginning of that year?

1 Answer
Aug 29, 2016

Answer:

The ratio is #1.5# times the ratio at the beginning of that year.

Explanation:

Let #s_1 ,s_2# be the sales at beginning and 1 year after.
and #e_1 ,e_2# be the expenses at beginning and 1 year after.
Due to increased sale by #20%:. s_2 =1.2*s_1# and
Due to decreased expenses by #20%:. e_2 =0.8*e_1 :. s_2/e_2=(1.2*s_1)/(0.8*e_1)= 1.5*(s_1/e_1):.#The ratio of sale and expenses is #1.5# times the ratio at the beginning of that year.[Ans]