Calculating Percentage Increase in Company Expenditure

The problem asks us to find the percentage increase in the total expenditure of a company from the year 2019 to the year 2020, based on the provided table.

First, let's carefully examine the given table showing the expenditure of the company (in Lakh Rupees) per annum over the given years for different expenditure items.

To find the total expenditure for a specific year, we need to sum up the expenditure for all items in that year.

Total Expenditure in 2019

The expenditures in 2019 for each item are:

• Salary: 450
• Travel: 75
• Hospitality: 40
• Interest on Loans: 36
• Taxes: 94

Total Expenditure in 2019 = Sum of expenditures for all items in 2019

Total Expenditure in 2019 = $\text{450} + \text{75} + \text{40} + \text{36} + \text{94}$

Total Expenditure in 2019 = $\text{695}$ Lakh Rupees.

Total Expenditure in 2020

The expenditures in 2020 for each item are:

• Salary: 480
• Travel: 84
• Hospitality: 43
• Interest on Loans: 39
• Taxes: 97

Total Expenditure in 2020 = Sum of expenditures for all items in 2020

Total Expenditure in 2020 = $\text{480} + \text{84} + \text{43} + \text{39} + \text{97}$

Total Expenditure in 2020 = $\text{743}$ Lakh Rupees.

Calculate the Increase in Expenditure

The increase in expenditure from 2019 to 2020 is the difference between the total expenditure in 2020 and the total expenditure in 2019.

Increase in Expenditure = Total Expenditure in 2020 - Total Expenditure in 2019

Increase in Expenditure = $\text{743} - \text{695}$

Increase in Expenditure = $\text{48}$ Lakh Rupees.

Calculate the Percentage Increase

The percentage increase is calculated using the formula:

Percentage Increase = $\left( \frac{\text{Increase in Expenditure}}{\text{Original Expenditure (2019)}} \right) \times 100$

Percentage Increase = $\left( \frac{\text{48}}{\text{695}} \right) \times 100$

Percentage Increase $\approx \text{0.06906} \times \text{100}$

Percentage Increase $\approx \text{6.906}$

Rounding to one decimal place, the percentage increase is approximately 6.9%.

Comparing this result with the given options, the closest value is 6.9.

Conclusion on Expenditure Increase

The increase of expenditure from 2019 to 2020 in percentage is approximately 6.9%.

Revision Table: Company Expenditure Analysis

Let's quickly summarize the key values used in the calculation:

Additional Information: Understanding Percentage Change

Percentage change is a useful concept to understand the relative increase or decrease in a value over time or between different points. The general formula for percentage change is:

Percentage Change = $\left( \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \right) \times 100$

• If the result is positive, it's a percentage increase.
• If the result is negative, it's a percentage decrease (the absolute value represents the percentage decrease).

In this problem, the initial value is the total expenditure in 2019, and the final value is the total expenditure in 2020. Since the final value (743) is greater than the initial value (695), we get a positive result, indicating a percentage increase.

Data interpretation questions often require calculating percentages, ratios, or averages from tables and graphs. Practicing such questions helps improve analytical skills needed for various exams.