The bar graph given below shows the percentage distribution of the total expenditures of a company under various expense heads during 2003.

Percentage Distribution of Total Expenditure of a Company

If the interest on loans amounted to Rs. 2.45 crores then the total amount of expenditure on advertisement, taxes and research and development is?

If the interest on loans amounted to Rs. 2.45 crores then the total amount of expenditure on advertisement, taxes and research and development is?

A.

Rs. 7 crores

B.

Rs. 5.4 crores

C.

Rs. 4.2 crores

D.

Rs. 3 crores

Correct answer is C

Let the total expenditure be Rs. x crores.

Then, 17.5% of x = 2.45 => x = 14.

Therefore Total expenditure = Rs. 14 crores.

and so, the total expenditure on advertisement, taxes and Research and Development

= Rs. [(15 + 10 + 5)% of 14] crores

= Rs. [30% of 14] crores

= Rs. 4.2 crores.