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 are in Rs. million. The percentage increase in profit percentage in 2022 over the previous year is 33 1/3%.
Year | Income (Rs. million) | Expenditure (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 '-'); calculate them if required.
What is the approximate profit percentage of the company through 2020, taking the total income and total expenditure for 2017 to 2020 together?
Answer: D. 17.67% — ConceptProfit percentage is calculated on expenditure: Profit% = ((Income - Expenditure) / Expenditure) × 100. When several years are combined, first add all…
- A.
18.92%
- B.
16.47%
- C.
18.24%
- D.
17.67%
Show answer & explanation
Correct answer: D
Concept
Profit percentage is calculated on expenditure: Profit% = ((Income - Expenditure) / Expenditure) × 100.
When several years are combined, first add all incomes and all expenditures; do not average the yearly percentages.
Application
For 2017, Expenditure = 103.824 / 1.12 = 92.7 million.
For 2018, Income = 83.8 × 1.25 = 104.75 million.
For 2019, the given Income and Expenditure are 95.76 million and 84 million.
For 2020, Expenditure = 113.28 / 1.20 = 94.4 million.
Total Income through 2020 = 103.824 + 104.75 + 95.76 + 113.28 = 417.614 million.
Total Expenditure through 2020 = 92.7 + 83.8 + 84 + 94.4 = 354.9 million.
Combined Profit = 417.614 - 354.9 = 62.714 million.
Combined Profit% = (62.714 / 354.9) × 100 ≈ 17.67%.
Cross-check
Using 17.67% of 354.9 million gives about 62.71 million profit; adding it to 354.9 million reproduces the total income of about 417.61 million.
Therefore, the approximate combined profit percentage is 17.67%.