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?

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Answers

Nipun Tuteja
Jan 18, 2022
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%.
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%.