The following table shows the income, expenditure and profit percentage of a…
2023
The following table shows the income, expenditure and profit percentage of a company for six years from 2017 to 2022. Income and expenditure figures are in Rs. million and the percentage increase in profit percent in year 2022 in comparison to previous year is \(33\frac{1}{3}\%\). Based on the data in the table, answer the questions that follow.
Year-wise details of Income, Expenditure and Profit of a company
Year | Income (in Rs. million) | Expenditure (in Rs. million) | Profit% |
|---|---|---|---|
2017 | 103.824 | - | 12% |
2018 | - | 83.8 | 25% |
2019 | 95.76 | 84 | - |
2020 | 113.28 | - | 20% |
2021 | 133.1 | 110 | - |
2022 | 121.6 | - | - |
Note: Some values are missing in the table (marked as '-') that you are expected to calculate if required.
Expenditure of the company in 2022 is (in Rs. million)
Answer: B. 95 — CONCEPTProfit percentage is calculated on expenditure: Profit% = (Income − Expenditure) ÷ Expenditure × 100. A percentage increase changes the earlier rate by…
- A.
94
- B.
95
- C.
99
- D.
81
Show answer & explanation
Correct answer: B
CONCEPT
Profit percentage is calculated on expenditure: Profit% = (Income − Expenditure) ÷ Expenditure × 100.
A percentage increase changes the earlier rate by the stated fraction of that earlier rate.
APPLICATION
For 2021, profit = 133.1 − 110 = 23.1 million. Therefore, profit% = (23.1 ÷ 110) × 100 = 21%.
The 2022 profit percentage is 33 1/3% higher than 21%. The increase is 21 × 1/3 = 7 percentage points, so the new rate is 21% + 7% = 28%.
Let the 2022 expenditure be E million. Then (121.6 − E) ÷ E × 100 = 28, so 121.6 − E = 0.28E, 121.6 = 1.28E, and E = 95.
CROSS-CHECK
With expenditure 95 million, profit = 121.6 − 95 = 26.6 million, and (26.6 ÷ 95) × 100 = 28%.
Therefore, the expenditure in 2022 is Rs. 95 million.