Question

For Company R, if the expenditure had increased by 20% in year 2001 from year 2000 and the company had earned profit of 10% in 2000, what was the Company's income in 2000 (in million US $)?

• A. 35.75
• B. 37.25
• C. 38.5
• D. 41.25

Answer 1

The correct option is D 41.25

Let the expenditure of Company R in 2000 be x million US $.Then,expenditureofCompanyRin2001$= \left ( \dfrac{120}{100} \times x\right )$millionUS$.
$\therefore \frac{120x}{100}=45\Rightarrow x=37.5$
i.e., expenditure of Company R in 2000 = 37.5 million US $.
Let the income of Company R in 2000 be I million US $.Then,$10 = \dfrac{(I - 37.5)}{37.5} \times 100 $[$\because\Rightarrow I - 37.5 = 3.75\Rightarrow I = 41.25$
i.e. Income of Company R in 2000 = 41.25 million US $.