Study the bar chart given below and answer the following questions: Income and…
2023
Study the bar chart given below and answer the following questions:
Income and Expenditure (in Rs. crore) in 2001 of five companies
For company R if the expenditure had increased by 20% in the year 2001 from the year 2000 and the company had earned profit of 10% in 2000, the company’s income in 2000 was (in Rs. crore).
- A.
41.25 crores
- B.
35.75 crores
- C.
37.25 crores
- D.
38.5 crores
Show answer & explanation
Correct answer: A
Concept:
Reverse percentage increase: if a value increased by r% to become V, the original value = V × 100 / (100 + r).
Profit percentage: Profit% = (Income − Expenditure) / Expenditure × 100, so Income = Expenditure × (1 + Profit% / 100).
Application:
From the bar chart, company R's expenditure in 2001 = Rs. 45 crore.
This 2001 figure is 20% more than the 2000 expenditure, so the 2000 expenditure = 45 × 100 / 120 = Rs. 37.5 crore.
Company R earned a 10% profit in 2000, so the 2000 income = 37.5 × (1 + 10/100) = 37.5 × 1.1 = Rs. 41.25 crore.
Cross-check:
Profit check: (41.25 − 37.5) / 37.5 × 100 = 10%, matching the stated profit rate for 2000. Growth check: 37.5 × 1.2 = 45 crore, matching the chart's 2001 expenditure for company R. Both confirm Rs. 41.25 crore as company R's 2000 income.