If the total expenditure of the two companies was ₹ 9 lakh in the year 2012…
2016
If the total expenditure of the two companies was ₹ 9 lakh in the year 2012 and the expenditure of A and B were in the ratio 2 : 1, then what was the income of the company A in that year ?
- A.
₹ 9.2 lakh
- B.
₹ 8.1 lakh
- C.
₹ 7.2 lakh
- D.
₹ 6.0 lakh
Show answer & explanation
Correct answer: B
Concept: Percentage profit relates income and expenditure by the formula: Profit % = ((Income − Expenditure) / Expenditure) × 100, so Income = Expenditure × (1 + Profit% / 100). When a total value is shared between two parties in a stated ratio, each party's share equals (its ratio part / sum of ratio parts) × total.
Applying this step by step:
Combined 2012 expenditure of A and B = ₹9 lakh, split in the ratio 2 : 1. Sum of ratio parts = 2 + 1 = 3, so one part = ₹9 lakh ÷ 3 = ₹3 lakh.
Company A's share (2 parts) = 2 × ₹3 lakh = ₹6 lakh.
From the table, company A's profit percentage for 2012 is 35%.
Apply the profit formula: Income of A = Expenditure of A × (1 + 35/100) = ₹6 lakh × 1.35 = ₹8.1 lakh.
Cross-check: Substitute the value back into the formula: Profit% = ((8.1 − 6) / 6) × 100 = (2.1 / 6) × 100 = 35%, which matches the table's stated 2012 profit percentage for company A, confirming the income figure.