Study the bar chart given below and answer the following questions:Income and…
2024
Study the bar chart given below and answer the following questions:Income and Expenditure (in Rs. crore) in 2001 of five companies
In 2001, the approximate percentage of profit/loss of all the five companies taken together is equal to-
- A.
6.88% loss
- B.
4.65% profit
- C.
4.88% profit
- D.
4% loss
Show answer & explanation
Correct answer: C
For a group of entities, profit or loss percentage is always calculated on the TOTAL EXPENDITURE (the cost/base), never on the total income: Profit or Loss % = |Total Income - Total Expenditure| / Total Expenditure x 100. If total income exceeds total expenditure, it is a profit; if expenditure exceeds income, it is a loss.
Read each company's expenditure and income (in Rs. crore) from the bar chart: M - 45 and 35; N - 40 and 50; P - 45 and 40; Q - 30 and 40; R - 45 and 50.
Add the five income figures: 35 + 50 + 40 + 40 + 50 = Rs. 215 crore (Total Income).
Add the five expenditure figures: 45 + 40 + 45 + 30 + 45 = Rs. 205 crore (Total Expenditure).
Since Total Income (215) is greater than Total Expenditure (205), the five companies together make a profit of 215 - 205 = Rs. 10 crore.
Profit % = (10 / 205) x 100 = 4.878..., which rounds to approximately 4.88%.
Cross-check: 4.88% of the total expenditure (Rs. 205 crore) is 205 x 0.0488 ≈ 10 crore, which matches the Rs. 10 crore profit computed above, confirming the result.
