1.  If the expenditures of Company X and Y in 1996 were equal and the total income of the two Companies in 1996 was ₹ 342 crores, what was the total profit of the two Companies together in 1996 ? (Profit = Income - Expenditure)

 A. ₹ 240 crores B. ₹ 171 crores C. ₹ 120 crores D. ₹ 102 crores E. None of these

Explanation:

Let the expenditures of each companies X and Y in 1996 be ₹ x crores.

And let the income of Company X in 1996 be ₹ z crores.

So that the income of Company Y in 1996 = ₹ (342 - z) crores.

Then, for Company X we have:

 40 = z - x x 100 40 = z - 1 x 100 x x = (100z/140) ....(i)

Also, for Company Y we have:

45 = (342 - z) x 100 / x 45 = (342 - z) - 1 100 x x = (342 -z) x(100) /(145) ..... (ii)

From (i) and (ii), we get:

 100z = (342 - z) x 100 z = 168. 140 145

Substituting z = 168 in (i), we get : x = 120. Total expenditure of Companies X and Y in 1996 = 2x

= ₹ 240 crores.

Total income of Companies X and Y in 1996

= ₹ 342 crores. Total profit = ₹ (342 - 240) crores = ₹ 102 crores.