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

Answer: Option D

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.

Therefore Total expenditure of Companies X and Y in 1996 = 2x 

     = ₹ 240 crores.

Total income of Companies X and Y in 1996 

    = ₹ 342 crores.

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