Calculate amount of Profit after Tax if, Revenue from operation ₹4,00,000; Cost of Revenue from Operations is 20% of Revenue from operations. Tax rate @ 50%.

₹1,60,000

The correct answer is Option (3) → ₹1,60,000.

Revenue from operations = 4,00,000
Cost of Revenue from Operations is 20% of Revenue from operations.
Cost of Revenue from Operations = 4,00,000 x 20/100
                                                 = 80,000

Profit before tax = Revenue from operations - Cost of revenue from operations
                         = 4,00,000 - 80,000
                         = 3,20,000

Tax rate = 50%

Profit after tax = 3,20,000 x 50/100
                      = 1,60,000