Question

Directions:
Directions for the following 4 questions: The table below shows the annual Revenue and Expenditure (both in Rs. crore) of a company for five years. Profit in a year = Revenue - Expenditure. Study the data and answer the questions that follow. Year | Revenue | Expenditure 2019 | 120 | 80 2020 | 150 | 90 2021 | 180 | 120 2022 | 200 | 140 2023 | 250 | 175

What was the profit (in Rs. crore) earned by the company in 2021?

• A. 50
• B. 55
• C. 60
• D. 70

Hint:

Instead of subtracting directly, try expressing the expenditure as a fraction of the revenue for that year - the remaining fraction of revenue is the profit.

Answer 1

The Correct Option is C

Step 1: Instead of subtracting Expenditure from Revenue directly, use the ratio between Expenditure and Revenue for 2021 to find what fraction of revenue is profit.
Step 2: In 2021, Revenue $=180$ crore and Expenditure $=120$ crore.
Step 3: Express expenditure as a fraction of revenue: $\frac{120}{180}=\frac{2}{3}$.
Step 4: Since expenditure is $\frac{2}{3}$ of revenue, profit (which is revenue minus expenditure) must be the remaining fraction: $1-\frac{2}{3}=\frac{1}{3}$ of revenue.
Step 5: Profit $=\frac{1}{3}\times180=60$ crore. \[\boxed{60}\]