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Question : The table given below represents the cost, revenue, and tax rate for XYZ Limited for a period of 8 years. Cost and revenue are given in INR '000 crore.

Year Revenue Cost Tax rate
Y1 800 600 20%
Y2 1100 850 22%
Y3 1200 900 22%
Y4 1200 950 25%
Y5 1350 1050 30%
Y6 1500 1200 30%
Y7 1600 1240 33%
Y8 1850 1400 15%

Profit for any year = Revenue – Cost
Profit after tax for any year = profit of that year – tax of that year
Tax on any year = tax rate of that year $\times$ profit of the year
How many distinct values of yearly profit are there?

Option 1: 3

Option 2: 4

Option 3: 5

Option 4: 6


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 5


Solution : Here all amounts are in thousands of crores of INR
Profit (before tax) for Y1, 800 – 600 = 200
Profit (before tax) for Y2, 1100 – 850 = 250
Profit (before tax) for Y3, 1200 – 900 = 300
Profit (before tax) for Y4, 1200 – 950 = 250
Profit (before tax) for Y5, 1350 – 1050 = 300
Profit (before tax) for Y6, 1500 – 1200 = 300
Profit (before tax) for Y7, 1600 –1240 = 360
Profit (before tax) for Y8, 1850 – 1400 = 450
There are 5 distinct values.
Hence, the correct answer is 5.

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