A company is earning an income from which expenditure (other than tax) is deducted to get the amount of profit earned. The company has to pay tax of 22% on the profit earned. If net profit after paying taxes is ₹2,340, which is 18% of expenditure (other than taxes), what was the income (in ₹) of the company?

Correct option is D

Given:

Net profit after taxes = ₹2,340

Expenditure Amount percent of ₹2,340 = 18%

Tax on profit earned = 22% 

Solution:

Let the income before tax be $$x$$​​

Then $$x - 22\% \, \ of \ x = 2340$$ 

​$$x- 0.22x = 2340$$​​

​$$0.78x= 2340$$​​

​$$x= ₹3,000$$​​

If 18%  of expenditure is ₹2340

Then, expenditure = $$2340 \times \frac{100}{18}$$​​

​$$= ₹13000$$​​

Total income of company = 13,000 + 3000 = ₹16,000