Revenue from operations is ₹40,00,000, other income is 10% of Revenue from Operations. Expenses are 40% of Revenue from Operations. Amount of Profit before Tax will be:

₹ 28,00,000

The correct answer is Option (2) - ₹ 28,00,000.

Revenue from operations = ₹40,00,000
Other income                   = 10% of Revenue from Operations
                                       = 10/100 x 40,00,000
                                       = 4,00,000

Total revenue = Revenue from operations + Other income
                      = 40,00,000 + 4,00,000
                      = ₹44,00,000

Expenses are 40% of Revenue from Operations
Expenses = 40,00,000 x 40/100
                = 16,00,000

Profit before tax = Total Revenue - Expenses
                          = 44,00,000 - 16,00,000
                          = 28,00,000