Instructions

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

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

Question 55

Expenditures of Company A in 2004 and 2005 are Rs. 12 lakhs and Rs. 14.5 lakhs respectively. What was the total income of Company A in 2004 and 2005 together (in lakh Rs. )

Solution

We use the formula, % profit = (I - E)/E

In 2004, % profit = 50%

So, .5 = (I - E)/E => I = 1.5 E = 1.5 * 12 = 18 lakhs.

In 2005, % profit = 60%

So, .6 = (I-E)/E => I = 1.6 E = 1.6 *14.5 = 23.2 lakhs

So, total = 18 + 23.2 = 41.2 lakhs

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