Question

If the income of company A in the year 2001 was Rs 35 lakhs, what was its expenditure in that year?

• A. Rs 24 lakhs
• B. Rs 21 lakhs
• C. Rs 25 lakhs
• D. Cannot be determined
• E. None of the above

Answer 1

The correct option is C Rs 25 lakhs

Per cent profit of company A in year 2001 = 40%
Let the expenditure be Rs x lakhs.
$\therefore 40=\frac{35-x}{x}\times 100$
$\Rightarrow \frac{40}{100}=\frac{35}{x}-1$
$\Rightarrow \frac{35}{x}=\frac{2}{5}+1$
$=\frac{7}{5}$
$\Rightarrow x=\frac{35\times 5}{7}$
=Rs 25 lakhs