In the year 2022, if the income of Company B was ₹52 Crore and the…
2024
In the year 2022, if the income of Company B was ₹52 Crore and the expenditures of both the Companies A and B were same, then what was the average of income of both the companies A and B?
Answer: C. ₹55 Crore — CONCEPT Profit percentage is measured on expenditure: Profit % = ((Income − Expenditure) / Expenditure) × 100. Therefore, Income = Expenditure × (1 + Profit %…
- A.
₹22 Crore
- B.
₹33 Crore
- C.
₹55 Crore
- D.
₹44 Crore
Show answer & explanation
Correct answer: C
CONCEPT
Profit percentage is measured on expenditure: Profit % = ((Income − Expenditure) / Expenditure) × 100.
Therefore, Income = Expenditure × (1 + Profit % / 100). When two companies have the same expenditure, compute each income from that common base before taking the average.
APPLICATION
For Company B in 2022, 52 = E × (1 + 30/100) = 1.30E, so E = 52/1.30 = ₹40 crore.
The expenditures are equal, so Company A also has expenditure ₹40 crore.
Company A earned 45% profit, so its income = 40 × (1 + 45/100) = 40 × 1.45 = ₹58 crore.
Average income = (₹52 crore + ₹58 crore) / 2 = ₹110 crore / 2 = ₹55 crore.
CROSS-CHECK
Company B: (52 − 40) / 40 × 100 = 30%. Company A: (58 − 40) / 40 × 100 = 45%. Both reproduce the table values, so the average is ₹55 crore.