For company R, if the expenditure had increased by 20% in the year 2001 from the year 2000 and company had earned profit of 10% in 2000, the company’s income in year 2000 (in crore).

A. 35.75

B. 37.25

C. 41.67

D. 38.5

Answer: Option C

Solution(By Examveda Team)

Expenditure in 2001 of R = 45
Expenditure in 2000 of R
$$\eqalign{ & = 45 \times \frac{100}{120} \cr & = 37.5 \cr} $$
The income of company in 2000
$$\eqalign{ & = 37.5 \times \frac{100}{90} \cr & = 41.67 \cr} $$