Correct option is A
Given:
Expenditure of Company A in 2005 = ₹40 crore
Profit percentage of Company A in 2005 = 60%
Expenditure of Company B in 2005 = ₹35 crore
Profit percentage of Company B in 2005 = 48%
Formula Used:
Income=Expenditure+Expenditure×100Profit%
Profit = Income – Expenditure
So,
Income−Expenditure=Expenditure×100Profit% ⟹Profit of a company=Expenditure×100Profit percentage
Solution:
The profit of Company A in 2005:
Profit of Company A=40×10060=40×0.6=₹24
The profit of Company B in 2005:
Profit of Company B=35×10048=35×0.48=₹16.8crore
Now,
Difference in profit = ₹24 − ₹16.8 = ₹7.2 crore