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The answer is 4.
the actual question was - how many small rectangles of dimension 3 x 4 can be cut from a rectangular sheet of dimension 12 x 8.
in this question, the answer works out to be 7 since you can have 4 3 x 4 sheets in the first row and 3 4 x 3 sheets in the second row.
also, the answer = 12 * 8 / 3 * 4.
so my frined was insisting very hard that for these kind of problems, always the answer can be found by dividing the area of the big sheet by the area of small sheets and by taking the integer part of the whole number.
suddenly, i had some self doubts and hence posted this question.
i guess my logic is fine.