Question Details

The following table shows the Income (in lakh) and percentage (%) profit of a company over the six years from 2017 to 2022. Based on the data in the table, answer the questions that follow.

Year-wise Income and Profit of a Company

Year  Income (in ₹ lakh) Profit (%)
 
2017 120 7.5
2018 160 15
2019 130 22.5
2020 170 17.5
2021 190 20
2022 150 27.5

If the percentage profit in 2021 was 25% instead of 20% than what would have been the expenditure in that year?

Options

A

130 lakh 

B

148 lakh 

C

120 lakh

D

152 lakh

Show Answer

Correct Answer :

Option D

152 lakh

Solution :

The correct answer is 152 lakh.

Based on the provided table, we can analyze the data points for the year 2021:
- Income in 2021 = 190 lakh rupees
- Original Profit percentage in 2021 = 20%

The question asks for the expenditure in 2021 if the profit percentage had been 25% instead of 20%.

We use the standard formula relating Income, Expenditure, and Profit Percentage:

Profit % = ( Income - Expenditure Expenditure ) × 100

Let the expenditure in 2021 be represented by E (in lakh rupees). Substituting the given values into the formula:

25 = ( 190 - E E ) × 100

Now, we solve for E step-by-step:

Divide both sides by 100:

25 100 = 190 - E E
Simplify the fraction on the left side:

1 4 = 190 E - 1
Add 1 to both sides of the equation:

190 E = 1 + 1 4
Combine the terms on the right side:

190 E = 5 4
Cross-multiply to solve for E:

5 × E = 190 × 4
Calculate the product on the right side:

5 E = 760
Divide by 5:

E = 760 5 = 152

Therefore, if the profit percentage had been 25%, the expenditure in the year 2021 would have been 152 lakh.

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