Question

Which company had the highest total expenses?

• A. ANT
• B. BAT
• C. CAT
• D. DAT
• E. None of these

Answer 1

The correct option is C CAT

Expenses of CAT = Rs 10 lakh
Expenses of ANT = 90% of 10 = Rs 9 lakh
Given, profit of ANT = 10% of sales
$\therefore$ 10% of sales = Sales - Expenses
$\Rightarrow$ Expenses of ANT = 90% of sales of ANT
$\Rightarrow$ 9 = 90% of sales of ANT
$\Rightarrow$ Sales of ANT $=\frac{9}{90}\times 100$ = Rs 10 lakh
$\therefore$ Profit of ANT = Sales - Expenses
= Rs (10-9)lakh = Rs 1 lakh
Now, expenses of CAT = 5 $\times$ Profit
$\frac{1}{5}\times 10$ = Sales - Expenses
$\Rightarrow$ 2 = Sales - 10
$\Rightarrow$ Sales of CAT = Rs 12 lakh
$\therefore$ Profit of CAT = Sales - Expenses
= 12 - 10 Rs 2 lakh
$\therefore$ Profit of DAT = Profit of CAT = 2 lakh
Also, Sales of BAT = Sales of CAT = 12 lakh
$\therefore$ Profit of BAT = 20% of 12 = Rs 24 lakh
and Sales of DAT = 3 $\times$ Profit = 3 $\times$ 2 = Rs 6 lakh
On the basis of above calculation, the table is shown below:
$\begin{array}{cccc}Companies& Sales\left(inRslakh\right)& Expenses\left(inRslakh\right)& Profit\left(inRslakh\right)\\ ANT& 10& 9& 1\\ BAT& 12& 9.6& 2.4\\ CAT& 12& 10& 2\\ DAT& 6& 4& 2\end{array}$
From the table, it is clear that 'CAt' had the highest expenses.