Calculating Expenditure with Modified Profit Percentage

This problem requires us to determine the expenditure of a company in a specific year (2021) if its profit percentage were different from the actual value provided in the table. We are given the income for that year and the hypothetical new profit percentage. To solve this, we need to understand the relationship between income, expenditure, and profit.

Understanding the Relationship between Income, Expenditure, and Profit

The basic formula relating these three components is:

• Income = Expenditure + Profit

This means that the profit is the difference between the income and the expenditure:

• Profit = Income - Expenditure

The profit percentage is calculated based on the expenditure:

• Profit % = \(\left( \frac{\text{Profit}}{\text{Expenditure}} \right) \times 100\)

Applying the Formula to the 2021 Data

We are given the following information for the year 2021 from the table:

• Income in 2021 = Rs. 190 lakh
• Actual Profit % in 2021 = 20%

However, the question asks us to consider a scenario where the profit percentage in 2021 was 25% instead of 20%. So, for our calculation:

• Hypothetical Profit % in 2021 = 25%
• Income in 2021 = Rs. 190 lakh
• Expenditure in 2021 = Unknown (Let's call it \(E\))

Using the profit percentage formula and substituting \( \text{Profit} = \text{Income} - \text{Expenditure} \), we get:

\(\text{Profit} \% = \left( \frac{\text{Income} - \text{Expenditure}}{\text{Expenditure}} \right) \times 100\)

Now, let's plug in the values for 2021 with the hypothetical profit percentage:

\(25 = \left( \frac{190 - E}{E} \right) \times 100\)

Solving for Expenditure (E)

We need to solve this equation for \(E\):

Divide both sides by 100:

\(\frac{25}{100} = \frac{190 - E}{E}\)

\(0.25 = \frac{190 - E}{E}\)

Multiply both sides by \(E\):

\(0.25 \times E = 190 - E\)

Add \(E\) to both sides of the equation:

\(0.25 E + E = 190\)

\(1.25 E = 190\)

Divide both sides by 1.25 to find the value of \(E\):

\(E = \frac{190}{1.25}\)

\(E = 152\)

So, if the percentage profit in 2021 was 25%, the expenditure in that year would have been Rs. 152 lakh.

Comparing with Options

Let's compare our calculated expenditure with the given options:

• Option 1: Rs. 130 lakh
• Option 2: Rs. 148 lakh
• Option 3: Rs. 120 lakh
• Option 4: Rs. 152 lakh

Our calculated expenditure of Rs. 152 lakh matches Option 4.

The table shows the actual data, but for this specific question, we used the Income for 2021 from the table (Rs. 190 lakh) and a hypothetical profit percentage (25%) to calculate the expenditure.

Revision Table: Key Formulas

Additional Information: Data Interpretation Tips

When solving problems based on tables showing financial data like income, expenditure, and profit percentages, keep the following tips in mind:

• Always read the table headings and units carefully (e.g., Rs. lakh, %).
• Understand the definitions of terms like income, expenditure, and profit in the context of the problem.
• Pay close attention to whether the question asks about actual data from the table or a hypothetical scenario with modified values.
• Use the correct formulas relating the given data points.
• Be careful with percentage calculations; remember that profit percentage is usually calculated on expenditure unless stated otherwise.
• Break down complex problems into smaller steps.
• Double-check your calculations.