Table shows the income and expenditure (in million rupees) of five companies A to E in 2021. Percentage profit/loss = (income − expenditure)/expenditure × 100.
| Company | Income | Expenditure |
|---|---|---|
| A | 35 | 45 |
| B | 50 | 40 |
| C | 40 | 45 |
| D | 40 | 30 |
| E | 50 | 45 |
For Company E, if the expenditure had increased by 20 percent in the year 2021 from the year 2020 and the company had earned a profit of 10 percent in 2020, then the company's income in million rupees in 2020 was
A37.25
B38.50
C41.25 ✓ Correct
D42.75
Correct answer: (C) 41.25
Explanation
The income was 41.25 million, so the answer is 41.25.
Company E had an expenditure of 45 in 2021.
Since this was 20 percent more than its 2020 expenditure, the 2020 expenditure was 45 divided by 1.2, which is 37.5.
In 2020 the company earned a 10 percent profit, so income is 1.1 times expenditure.
So the 2020 income is 1.1 times 37.5.
That is 41.25.
So the 2020 income was 41.25 million.
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