GATE CSE 2020 | Question: GA-10

Question

The total revenue of a company during $2014-2018$ is shown in the bar graph. If the total expenditure of the company in each year is $500$ million rupees, then the aggregate profit or loss (in percentage) on the total expenditure of the company during $2014-2018$ is ___________.

• A. $16.67 \%$ profit
• B. $16.67 \%$ loss
• C. $20 \%$ profit
• D. $20 \%$ loss

Comments

1marks or 2marks?

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How profit can come, when we are measuring expenditure from taxes? How C) could be ans? Profit can get only from the cost price of buying. Here we donot know what the buying price is . Then can we not tell it could be 20% loss too??

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Why profit % is not calculated wrt total revenue?

500 -> total profit

2500 -> total expenditure

Why this two are taken for calculating aggregate profit loss?

Answer 1

Total expenditure during each year $= 500$ million rupees

Total expenditure for $5$ years $= 500 \times 5 = 2500$ million rupees

• Revenue in $2014 = 500$ million rupees
• Revenue in $2015 = 700$ million rupees
• Revenue in $2016 = 800$ million rupees
• Revenue in $2017 = 600$ million rupees
• Revenue in $2018 = 400$ million rupees

Total revenue $= 500+700+800+600+400 = 3000$ million rupees

Profit $= 3000-2500 = 500$ million rupees

Profit percentage $= \left(\frac{500}{2500} \right) \times 100 = 20 \%.$

Comments

Answer marked D? should be C according to explanation.

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How profit can come, when we are measuring expenditure from taxes? How C) could be ans? Profit can get only from the cost price of buying. Here we donot know what the buying price is . Then can we not tell it could be 20% loss too??

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total expenditure of the company in each year is 500 million.

and the revenue generated is given each year.

so we can find the profit or loss by subtracting the revenue by expenditure of the company for each year.

for first year we the expenditure and revenue cancel out.

second year we get 200 mil profit

third year we get 300 mil profit

fourth year we get 100 mil profit

fifth year we get 100 mil loss.

in total we get 500 mil profit over 5 years. i.e on aggregate basis 100 mil profit for 1 year.

thus, we spend 500 mil, and get 100 mil profit each year i.e 100/500 * 100 percentage

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Profit = Revenue - Expenditure

Loss = Expenditure - Revenue

where,

Revenue/Sales can be considered as Selling Price & Expenditure can be considered as Cost Price.

Sometimes, Profit / Loss can be known as Gross Margin to understand about the Business Statistics in the Real-World.

Answer 2

ANS. (C)

TOTAL PROFIT=(500+700+800+600+400)-2500=500

PERSENTAGE PROFIT=(500/2500)*100=20% PROFIT