Instructions

The table given below represents the cost, revenue and tax rate for XYZ Limited for a period of 8 years. Cost and revenue are given in Rs '000 crores. 

 

Profit for any year = revenue — cost

Profit after tax for any year = profit of that year - tax of that year

tax on any year = tax rate of that year x profit of that year

Question 98

Which of the following is correct about profit after tax for year Y2, Y6 and Y8?

Solution

Tax for year 2 (in Rs '000 crores) = $$\frac{22}{100}(1100-850)=22\times2.5=55$$

=> Profit after tax for year 2 (in Rs '000 crores) = 250 - 55 = 195

Similarly, profit after tax (in Rs '000 crores) for year :

Year 6 : $$\frac{(100-30)}{100}(300)$$ = 210

Year 8 : $$\frac{(100-15)}{100}(450)$$ = 382.5

=> Y8 > Y6 > Y2

=> Ans - (C)


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