Question

Question 3
1 Point
The profits earned by an XYZ company in 2016 were Rs. 3 lakhs. What was the profit earned in 2015?
1. In 2016, the expenditure was 25% more than in 2015
2. In 2016, the revenue was 25% more than in 2015
A Statement 1 ALONE is sufficient, but statement 2 alone is not sufficient to answer the question asked.
B
EACH statement ALONE is sufficient to answer the question asked.
Statement 2 ALONE is sufficient, but statement 1 alone is not sufficient to answer the question asked.
D
BOTH statements (1) and (2) TOGETHER are sufficient to answer the question asked, but NEITHER statement
ALONE is sufficient.
Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data
specific to the problem are needed.​

Answer 1

Question :- The profits earned by an XYZ company in 2016 were Rs. 3 lakhs. What was the profit earned in 2015 ?

1. In 2016 ,the expenditure was 25% more than in 2015.

2. In 2016, the revenue was 25% more than in 2015.

Options :-

A.) Statement 1 ALONE is sufficient, but statement 2 alone is not sufficient to answer the question asked.

B.) Statement 2 ALONE is sufficient, but statement 1 alone is not sufficient to answer the question asked.

C.) BOTH statements (1) and (2) TOGETHER are sufficient to answer the question asked, but NEITHER statement ALONE is sufficient.

D.) EACH statement ALONE is sufficient to answer the question asked.

E.) Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed.

Answer :- Option (C).

Explanation :-

Taking statement 1 alone :- In 2016, the expenditure was 25% more than in 2015 .

So,

→ Expenditure in 2016 = (125/100) * (Expenditure in 2015)

→ Expenditure in 2016 / Expenditure in 2015 = 5/4 .

→ Expenditure in 2015 : Expenditure in 2016 = 4 : 5 .

Here we have information only about expenditures. So, we can't find the profits earned in 2015.

Taking statement 2 alone :- In 2016, the revenue was 25% more than in 2015.

So,

→ Revenue in 2016 = (125/100) * (Revenue in 2015)

→ Revenue in 2015 : Revenue in 2016 = 4 : 5 .

Again, we have information about revenues only .

So, we can't find the profits earned in 2015.

Taking both statements 1 and 2 together :-

from statement 1 and 2 we have :-

→ Expenditure in 2015 : Expenditure in 2016 = 4 : 5 .

→ Revenue in 2015 : Revenue in 2016 = 4 : 5 .

Also, Given that, XYZ Company’s profits in 2016 were Rs.3 lakhs.

So,

→ Profit in 2016 = Revenue in 2016 - Expenditure in 2016 = Rs. 3 Lakhs.

Let us assume that, Expenditure in 2015 and Expenditure in 2016 is 4x and 5x .

Also, Revenue in 2015 and Revenue in 2016 is 4y and 5y .

Than,

→ Profit in 2016 = Revenue in 2016 - Expenditure in 2016

→ Profit in 2016 = 5y - 5x

→ 5y - 5x = 3,00,000

→ 5(y - x) = 3,00,000

→ (y - x) = 60,000

Therefore,

→ Profit in 2015 = Revenue in 2015 - Expenditure in 2015

→ Profit in 2015 = 4y - 4x

→ Profit in 2015 = 4(y - x)

Putting value of (y - x) ,

→ Profit in 2015 = 4 * 60,000

→ Profit in 2015 = Rs.2,40,000

Hence, Profit Earned in 2015 is Rs.2,40,000 .

∴ Option (C) is Correct answer . BOTH statements (1) and (2) TOGETHER are sufficient to answer the question asked, but NEITHER statement ALONE is sufficient.