Mr. Rajanish, MD of JK enterprises finds out the total revenue of the company is Rs 999300 and total expenditure of the company is Rs 666200 and rest is profit. Due to the establishment of a new plant, the revenue is increased by 19% and the expenditure is increased by 13%. Find the percentage change in profit.65.5%37%49.5%31%
Question
Mr. Rajanish, MD of JK enterprises finds out the total revenue of the company is Rs 999300 and total expenditure of the company is Rs 666200 and rest is profit. Due to the establishment of a new plant, the revenue is increased by 19% and the expenditure is increased by 13%. Find the percentage change in profit.65.5%37%49.5%31%
Solution
Step 1: Calculate the initial profit.
The initial profit is the total revenue minus the total expenditure.
Profit = Revenue - Expenditure Profit = Rs 999300 - Rs 666200 = Rs 333100
Step 2: Calculate the new revenue and expenditure.
The revenue increased by 19%, so the new revenue is 119% of the original. New Revenue = 1.19 * Rs 999300 = Rs 1189167
The expenditure increased by 13%, so the new expenditure is 113% of the original. New Expenditure = 1.13 * Rs 666200 = Rs 752866
Step 3: Calculate the new profit.
New Profit = New Revenue - New Expenditure New Profit = Rs 1189167 - Rs 752866 = Rs 436301
Step 4: Calculate the change in profit.
Change in Profit = New Profit - Old Profit Change in Profit = Rs 436301 - Rs 333100 = Rs 103201
Step 5: Calculate the percentage change in profit.
Percentage Change in Profit = (Change in Profit / Old Profit) * 100 Percentage Change in Profit = (Rs 103201 / Rs 333100) * 100 = 30.98%
So, the percentage change in profit is approximately 31%.
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