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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


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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.

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