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%.
Answer & explanation
Correct answer: option 3
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