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.


What is the increase in profit of Contigent Company in percentage from year 2011 to 2012?

Options

A

10%

B

20%

C

15%

D

Cannot be determined.

Show Answer

Correct Answer :

Option B

20%

Solution :

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The correct option is 20%.


Step-by-step Explanation:


1. Extract the relevant data for Contigent Company from the text:
- Profit percentage of Contigent in the year 2011 = 50%
- Profit percentage of Contigent in the year 2012 = 60%


2. Calculate the change in profit percentage:
The increase in profit percentage points from 2011 to 2012 is:
60%-50%=10%


3. Calculate the percentage increase from 2011 to 2012:
To find the percentage increase relative to the base year 2011, we use the formula:
Percentage Increase=Increase in Profit PercentageProfit Percentage in 2011×100
Substituting the given values into the formula:
Percentage Increase=1050×100
Percentage Increase=0.2×100=20%


Thus, the profit of Contigent Company increased by 20% from the year 2011 to 2012.

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