Question

If the expenditures of Company X and Y in 1996 were equal and the total income of the two Companies in 1996 was Rs. 342 crores, what was the total profit of the two Companies together in 1996 ? (Profit = Income - Expenditure)

• A. Rs. 240 crores
• B. Rs. 171 crores
• C. Rs. 120 crores
• D. Rs. 102 crores

Answer 1

The correct option is D Rs. 102 crores

Let the expenditures of each companies X and Y in 1996 be Rs. x crores.
And let the income of Company X in 1996 be Rs. z crores.
So that the income of Company Y in 1996 = Rs. (342 - z) crores.
Then, for Company X we have:
$40=\frac{z-x}{x}\times 100\Rightarrow \frac{40}{100}=\frac{z}{x}-1\Rightarrow x=\frac{100z}{140}$...(i)
Also, for Company Y we have:
$45=\frac{(342-z)}{x}\times 100\Rightarrow \frac{45}{100}=\frac{(342-z)}{x}-1\Rightarrow x=\frac{(342-z)\times 100}{145}$....(ii)
From (i) and (ii), we get:
$\frac{100z}{140}=\frac{(342-z)\times 100}{145}\Rightarrow z=168$
Substituting z = 168 in (i), we get : x = 120.
$\therefore$ Total expenditure of Companies X and Y in 1996 = 2x = Rs. 240 crores.
Total income of Companies X and Y in 1996 = Rs. 342 crores.
$\therefore$ Total profit = Rs. (342 - 240) crores = Rs. 102 crores.