Question Details

Two renowned international Software companies, namely Pollaris and Contigent, started their business in the year 2007 and both the companies were in competition with each other in profit making. Pollaris earned 30 per cent profit in the year 2007 and 2008, and further increased it to 40 per cent in 2009. However, its profit percentage decreased to 20 per cent in the year 2010. On the other hand, Contigent opened with 40 per cent profit in 2007, but slowly decreased to 35 per cent in 2008 and 30 per cent in 2009. Interestingly, both the companies increased their profit percentage in the later year considerably. Pollaris increased its profit percentage to 35 per cent in 2011 and 50 per cent in 2012; simultaneously, Contigent increased its profit percentage to 45 per cent in 2010, 50 per cent in 2011 and reached 60 per cent in the year 2012.
As there is a need to understand the income and expenditure for the better performance of both companies in the future, answer the following questions.

If the income of Contigent Company in 2008 was ₹ 200 crores, what was its profit in 2009?

Options

A

₹ 21.5 Crore

B

₹ 46.15 Crore

C

₹ 153 Crore

D

Cannot be determined.

Show Answer

Correct Answer :

Option D

Cannot be determined.

Solution :

Correct Option: Cannot be determined.


Step-by-Step Explanation:


1. Understand the Relationship between Profit Percentage, Income, and Expenditure:
In financial calculations, Profit Percentage is typically defined with respect to Expenditure:

Profit Percentage=(ProfitExpenditure)×100


Where:

Profit=IncomeExpenditure


Therefore:

Income=Expenditure+Profit=Expenditure×(1+Profit Percentage100)


2. Analyze the Given Data:
From the problem text:
• For Contigent in the year 2008, the profit percentage was 35%.
• For Contigent in the year 2009, the profit percentage was 30%.
• We are given the Income of Contigent in 2008 as ₹ 200 crores.


3. Evaluate the Profit in 2009:
To find the actual Profit of Contigent in the year 2009, we need either:
• The Expenditure of Contigent in 2009, or
• The Income of Contigent in 2009.


From the given Income of ₹ 200 crores in 2008 and the 2008 profit percentage (35%), we can calculate the Expenditure of Contigent in 2008:

Expenditure in 2008=2001+0.35=2001.35₹ 148.15 crores


However, the problem does not state or assume that the Expenditure or Income remained constant from 2008 to 2009, nor does it provide any relationship between the expenditures or incomes of the two different years.


Conclusion:
Since there is no given relation between the financial figures (Income or Expenditure) of 2008 and 2009 for Contigent Company, the profit for the year 2009 cannot be calculated.


Hence, the correct answer is Cannot be determined.

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