Given bar graph shows, total expenditure and the gross receipts of a company (in ₹ crores). Study the graph and answer the question that follows.
In order to make a profit of 20%, what should have been the gross receipts (in crore ₹) in 1995-96, if the total expenditure remained the same?
Answer & explanation
Correct answer: option 3
By using the formula ,
Profit % = \(\frac{Profit}{Expenditure }\) × 100
It is given that ,
Profit % = 20%
Expenditure in 1995 - 96 = 5500
Now ,
20 = \(\frac{Profit}{5500 }\) × 100
Profit = 55 × 20 = 1100
We know ,
Receipts = Expenditure + Profit
= 5500 + 1100
= 6600