Question : Given a national income of INR 7,500 crore, compensation of employees is INR 3,500 crore, wages and salaries in cash is INR 1,500 crore, rent is INR 800 crore, corporate tax is INR 700 crore, and dividend is INR 200 crore, what is the profit in this case?
Option 1: INR 800 crore
Option 2: INR 1,200 crore
Option 3: INR 1,400 crore
Option 4: INR 1,600 crore
Correct Answer: INR 800 crore
Solution : To calculate the profit in this case, we need to subtract the compensation of employees, wages and salaries in cash, rent, corporate tax, and dividend from the national income.
Profit = National income - Compensation of employees - Wages and salaries in cash - Rent - Corporate tax - Dividend
National income = INR 7,500 crore
Compensation of employees = INR 3,500 crore
Wages and salaries in cash = INR 1,500 crore
Rent = INR 800 crore
Corporate tax = INR 700 crore
Dividend = INR 200 crore
Substituting the values into the formula:
Profit = INR 7,500 crore - INR 3,500 crore - INR 1,500 crore - INR 800 crore - INR 700 crore - INR 200 crore
Profit = INR 800 crore
Therefore, the profit in this case is INR 800 crore.