Sign in
Please select an account to continue using cracku.in
↓ →
Study the given graph and answer the questions that follow.
$$Percent profit = \frac{Income - Expenditure}{Expenditure} \times 100$$
Profit = Income - Expenditure
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?
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.
Was this solution helpful?
Book Free CAT Mentorship
Get personalized CAT strategy from a 99%iler
500+ students mentored
OTP Verification
Enter the 6-digit code sent to your phone
Booking Summary
Enter OTP
Didn't receive the OTP?
Start your IIM journey with the right preparation and crack CAT 2026.
Educational materials for CAT preparation