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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹ 28,00,000
Other income = 10% of ₹40,00,000 = ₹4,00,000
Total revenue = ₹40,00,000 + ₹4,00,000 = ₹44,00,000
Expenses = 40% of ₹40,00,000 = ₹16,00,000
Profit before tax = ₹44,00,000 − ₹16,00,000 = ₹28,00,000