A small scale business has the following expenses , procurement (25%) , employee's salary (25%) and 50% for maintenance .
If the business pays a total salary of Rs 2,00,000 then what is its maintenance expense

Options

A. Rs 3,00,000
B. Rs 4,00,000
C. Rs 2,50,000
D. Rs 2,00,000

Answer

To solve the problem step by step, we need to analyze the expenses of the small-scale business and calculate the maintenance expense based on the given salary.

### Step-by-Step Solution:

1. **Identify the Total Salary Paid**:
The business pays a total salary of Rs 2,00,000.

2. **Understand the Expense Distribution**:
The expenses are distributed as follows:
- Procurement: 25%
- Employee's Salary: 25%
- Maintenance: 50%

3. **Calculate Total Expenses**:
Since the employee's salary accounts for 25% of the total expenses, we can set up the equation:
\[ \text{Employee's Salary} = 25\% \text{ of Total Expenses} \]
Let \( x \) be the total expenses. Therefore:
\[ 0.25x = 2,00,000 \]

4. **Solve for Total Expenses**:
To find \( x \), we rearrange the equation:
\[ x = \frac{2,00,000}{0.25} \]
\[ x = 2,00,000 \times 4 = 8,00,000 \]
So, the total expenses of the business are Rs 8,00,000.

5. **Calculate Maintenance Expense**:
Now, we know that maintenance accounts for 50% of the total expenses:
\[ \text{Maintenance Expense} = 50\% \text{ of Total Expenses} \]
\[ \text{Maintenance Expense} = 0.50 \times 8,00,000 = 4,00,000 \]

6. **Final Answer**:
Therefore, the maintenance expense is Rs 4,00,000.