In the year 2023, if the income of Company B was ₹70 Crores, then what was the…

Concept: Profit is the excess of income (revenue) over expenditure (cost), and in commercial arithmetic the profit percent is always measured on the expenditure, never on the income. So Profit % = (Income − Expenditure) ÷ Expenditure × 100, which rearranges to Income = Expenditure × (100 + Profit %) ÷ 100. A profit percentage read off a table is therefore a multiplier that converts a cost into a revenue.

Application: read the 2023 row of the table for Company B and apply that multiplier.

1. From the table, the profit percent earned by Company B in 2023 is 40%.

2. Let the expenditure of Company B in that year be E crore; its income for the year is given as ₹70 crore.

3. Substituting in Income = Expenditure × (100 + Profit %) ÷ 100 gives 70 = E × 140 ÷ 100.

4. Simplifying the multiplier, 140 ÷ 100 = 7/5, so 70 = 7E/5, i.e. 7E = 350.

5. Dividing by 7, E = 350 ÷ 7 = 50.

Cross-check: an expenditure of ₹50 crore against an income of ₹70 crore leaves a profit of 70 − 50 = ₹20 crore, and 20 ÷ 50 × 100 = 40%, exactly the figure the table records for Company B in 2023.

Common pitfall: taking the percentage on the income instead gives 40% of ₹70 crore = ₹28 crore of profit and ₹42 crore of expenditure. That treats revenue as the base, which is not how profit percent is defined, and ₹42 crore is not among the choices.

Hence the expenditure of Company B in 2023 was ₹50 crore.