Instructions

Study the given graph and answer the questions that follow.

$$Percent profit = \frac{Income - Expenditure}{Expenditure} \times 100$$
Profit = Income - Expenditure

Question 52

# In 2020, if the total income of companies A and B was ₹534 crores and their expenditures were in the ratio 1 : 2, then what was the total expenditure (in ₹ crores) of the companies in that year?

Solution

Let the expenditure of A and B in 2020 be X and 2X respectively, where X is a constant.
We can see that the profit percent of A in 2020 is 35%
using the formula given for the profit percentage, we get $$\frac{I_A-X}{X}=0.35$$  {$$I_A$$ is the investment made by A}
= $$100I_A-100X=35X$$
=$$I_A=1.35X$$

We can also see that the profit percent of B in 2020 is 55%
Using the formula given for the profit percentage, we get $$\frac{I_B-2X}{2X}=0.55$$  {$$I_B$$ is the investment made by B}
$$10I_B-20X=11X$$
= $$I_B=3.1X$$

Total investment by A and B is 4.45X, which we know is equal to 534 crores, through this we get the value of X to be 120.
Thus, the total investment is 3X, which is $$3\times\ 120=360$$ crores

Therefore, option D is the correct answer.