Question

Type Firm 1966 1970 1974 Petroleum 11.2 9.3 12.7 Drugs 10.8 9.4 12.2 Chemicals 8.0 5.0 8.2 Motor Vehicles 6.2 2.4 2.7 Electrical 4.8 3.3 3.9 Food 2.7 2.5 2.8

Which industry had the greatest percentage increase in profits as a percentage of sales between 1970 and 1974?

What was the percentage increase?

Answer 1

chemicals

64%

Explanation:

Answer 2

Chemical industry had the greatest percentage increase in profits as a percentage of sales between 1970 and 1974 i.e. 64 %

Explanation:

Type firm : 1966 1970 1974

Petroleum 11.2 9.3 12.7

Drugs 10.8 9.4 12.2

Chemicals 8.0 5.0 8.2

Motor Vehicles 6.2 2.4 2.7

Electrical 4.8 3.3 3.9

Food 2.7 2.5 2.8

Now we need to check increase in percentage of sales between 1970 and 1974

Sale of petroleum in 1970 = 9.3

Sale of petroleum in 1974 = 12.7

So, increase = 12.7-9.3 =3.4

So, percentage of increase in petroleum =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(3.4)/(9.3) * 100`

=
`36.55\%`

Sale of drugs in 1970 = 9.4

Sale of drugs in 1974 = 12.2

So, increase = 12.2-9.4 =2.8

So, percentage of increase in drugs =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(2.8)/(9.4) * 100`

=
`29.78\%`

Sale of chemicals in 1970 = 5

Sale of chemicals in 1974 = 8.2

So, increase = 8.2-5 =3.2

So, percentage of increase in chemicals =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(3.2)/(5) * 100`

=
`64\%`

Sale of motor vehicles in 1970 = 2.4

Sale of motor vehicles in 1974 = 2.7

So, increase = 2.7-2.4 =0.3

So, percentage of increase in vehicles =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(0.3)/(2.4) * 100`

=
`8.33\%`

Sale of electrical in 1970 = 3.3

Sale of electrical in 1974 = 3.9

So, increase =3.9-3.3 =0.6

So, percentage of increase in electrical =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(0.6)/(3.3) * 100`

=
`18.18\%`

Sale of food in 1970 = 2.5

Sale of food in 1974 = 2.8

So, increase =2.8-2.5 =0.3

So, percentage of increase in food =
`\frac{\text{Increase in amount}}{\text{initial amount}} * 100`

=
`(0.3)/(2.5) * 100`

=
`12\%`

Chemical industry had the greatest percentage increase in profits as a percentage of sales between 1970 and 1974 i.e. 64 %