A sponsor for the Indian Premier League generated a revenue of 3.1 million in INR and had a profit of 21% for the year 2020 before sponsoring the league. If the board calculates that the cost will rise this year by 10% by sponsoring a team and that the expected revenue will go up by 20%, what is the new profit percentage for the company?
a)
37%
b)
32%
c)
35%
d)
30%
Correct answer is option 'B'. Can you explain this answer?
Let the cost of the company before sponsoring the league be Rs. x It made a profit of 21% and generated a revenue of 3.1 million Ruppes. So, 1.21x= 3100000
If the costs go up by 10% this year, new cost= New revenue= .21x 3100000 So, new revenue is times the new cost. Or, new revenue is 1.32 times the new cost. .'. New profit= 32%.
Let the cost of the company before sponsoring the league be Rs. xIt made a profit of 21% and generated a revenue of 3.1 million Ruppes.So, 1.21x= 3100000If the costs go up by 10% this year, new cost=New revenue=.21x3100000So, new revenue is times the new cost.Or, new revenue is 1.32 times the new cost... New profit= 32%.
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Let the cost of the company before sponsoring the league be Rs. xIt made a profit of 21% and generated a revenue of 3.1 million Ruppes.So, 1.21x= 3100000If the costs go up by 10% this year, new cost=New revenue=.21x3100000So, new revenue is times the new cost.Or, new revenue is 1.32 times the new cost... New profit= 32%.