Instructions

Study the following graph carefully and answer questions given below it.

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

Question 53

If the expenditure of Companies A and B in 2001 were equal and the total income of the two companies was Rs. 116 lakhs, what was the total expenditure of the two companies in that year ?

Solution

Let the income of A be I and the expenditure of each company be x.

So, income of B = 116 - I

Based on the the formula, For A, % profit = 100* (Income - Expenditure)/Expenditure

40% = (I - x)/x => I = 1.4x

For B, % profit = 100* (Income - Expenditure)/Expenditure

=> 50% = (116 - I - x)/x => 116 - I = 1.5 x

116 - 1.4x = 1.5 x

So, x = 116/2.9 =40

Total expenditure = 2x = 80 lakhs

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