Instructions

In each of the following questions, a question and three statements I, II and III are given. You have to decide whether the data given in the statements are sufficient to answer the question or not.

Question 106

# How much profit did the company earn in the year 2002 ?I. The company earned 40% more profit in the year 2003 than that in the year 2001.II. The company earned a total profit of Rs. 20 crores in the year 2001 and 2002 taken together.III. In the year 2003, the company earned 80 per cent profit of that in 2002.

Solution

Clearly, each statement lone is insufficient as there is data about only 2 years in each statement.

I & II : Let profit in 2001 = 100x and profit in 2002 = y

=> profit in 2003 = 140x [40% more]

Now, 100x + y = 20

Since, there are two variables and one equation, we cannot solve it.

Thus, I & II together are insufficient.

Similarly, I & III and II & III are insufficient.

I & II & III : Combining all the statements, we get

Let profit in 2001 = 100x

=> profit in 2003 = 140x [40% more]

=> Profit in 2002 = $$\frac{80}{100}$$ * 140x = 112x

Now, 100x + 112x = 20 crore [From II]

=> x = 20/212

=> Profit in 2002 = 112x = 112 * $$\frac{20}{212}$$ = 10.5 crore

Thus, all statements together are sufficient.