Question

If the expenditures 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?

• A. Rs 65 lakhs
• B. Rs 80 lakhs
• C. Rs 42 lakhs
• D. Cannot be determined
• E. None of the above

Answer 1

The correct option is B Rs 80 lakhs

Let the income of company A = Rs x lakhs
$\therefore$ Income of company B = Rs (116 - x) lakhs
Let the expenditure of each company be Rs y lakhs
For company A,
$40=\frac{x-y}{y}\times 100$
$\Rightarrow 40y=(x-y)\times 100$
$\Rightarrow x-y=\frac{40y}{100}=\frac{2y}{5}$
$\Rightarrow x=\frac{2y}{5}+y$
$=\frac{7y}{5}$ ...(i)
For company B,
$50=\frac{(116-x)-y}{y}\times 100$
$\Rightarrow y=2(116-x)-2y$
$\Rightarrow 3y=232-2x$
$\Rightarrow 3y=232-2\times \frac{7y}{5}$ [From Eq.(i)]
$\Rightarrow 3y=232-\frac{14y}{5}$
$\Rightarrow 3y+\frac{14y}{5}=232$
$\Rightarrow \frac{29y}{5}=232$
$\Rightarrow y=\frac{232\times 5}{29}=40$
$\therefore$ Total Expenditure = 2y
= 2 $\times$ 40
= Rs 80 lakhs