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Study the given information carefully an...

Study the given information carefully and answer the given questions
The revenue of a given railway zone was collected from four primary sources— Offline Ticket Sales, Online Ticket Sales, Freight, fines during three Financial Years (FY2013-14, FY2014-15, FY2015-16)
2013-14: Total revenue collected was ₹3500 crore, Fines(₹ x crore) comprised `7 6/7%` of the total revenue and revenue from online ticket sales was ₹x+300 crore. Revenue from freight was `12%` more than that from offline ticket sales
FY 2014-15 : Revenue from online ticket sale increased by 25 crores over FY 2013-14. Revenue from offline ticket sale was 40 % of the total revenue in FY 2014-15. Revenue from Freight and Fines was in the respective ratio of `5:1`
FY 2015-16: Revenue from fines in FY 2013-14 was `11/16` th of that in FY2015-16. Revenue from online ticket sales increased by `50%` over that in FY 2014-15 and that from offline ticket sales was the average of that in FY 2013-14 and 2014- 15. Revenue from freight has been and will continue to increase steadily by ₹250 crore every financial year
If the railway profit in FY 2014-15 was `12.5%` of the total expense, what was the total expense for FY 2014- 15? (in ₹ crore)

A

2400

B

3200

C

3000

D

3822

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will analyze the information given for each financial year and calculate the required values. ### Step 1: Calculate Fines for FY 2013-14 The total revenue for FY 2013-14 is ₹3500 crore. Fines comprised \( \frac{7 \frac{6}{7}}{100} \) of the total revenue. \[ \text{Fines} = \frac{7 \frac{6}{7}}{100} \times 3500 = \frac{55}{7} \times 35 = 275 \text{ crore} \] ### Step 2: Calculate Online Ticket Sales for FY 2013-14 Let \( x \) be the fines, which we calculated as ₹275 crore. The revenue from online ticket sales is given as \( x + 300 \). \[ \text{Online Ticket Sales} = 275 + 300 = 575 \text{ crore} \] ### Step 3: Calculate Offline Ticket Sales and Freight for FY 2013-14 Let \( y \) be the revenue from offline ticket sales. The revenue from freight is 12% more than that from offline ticket sales. \[ \text{Freight} = y + 0.12y = 1.12y \] The total revenue equation for FY 2013-14 is: \[ y + 1.12y + 575 + 275 = 3500 \] Combining terms: \[ 2.12y + 850 = 3500 \] Solving for \( y \): \[ 2.12y = 3500 - 850 = 2650 \] \[ y = \frac{2650}{2.12} \approx 1250 \text{ crore} \] Now, calculate freight: \[ \text{Freight} = 1.12 \times 1250 = 1400 \text{ crore} \] ### Step 4: Calculate Total Revenue for FY 2014-15 Revenue from online ticket sales increased by ₹25 crore over FY 2013-14: \[ \text{Online Ticket Sales FY 2014-15} = 575 + 25 = 600 \text{ crore} \] Revenue from offline ticket sales was 40% of total revenue in FY 2014-15. Let \( T \) be the total revenue for FY 2014-15. \[ \text{Offline Ticket Sales} = 0.4T \] ### Step 5: Calculate Freight and Fines for FY 2014-15 The revenue from freight and fines is in the ratio of 5:1. Let the fines be \( f \) and freight be \( 5f \). From the previous calculations, we know: \[ \text{Fines} = 330 \text{ crore} \] \[ \text{Freight} = 1650 \text{ crore} \] ### Step 6: Total Revenue Equation for FY 2014-15 Now we can write the total revenue equation: \[ 0.4T + 600 + 1650 + 330 = T \] Combining terms: \[ 0.4T + 2580 = T \] \[ T - 0.4T = 2580 \] \[ 0.6T = 2580 \] \[ T = \frac{2580}{0.6} = 4300 \text{ crore} \] ### Step 7: Calculate Total Expenses for FY 2014-15 Given that the railway profit in FY 2014-15 was 12.5% of the total expenses, let \( E \) be the total expenses. \[ \text{Profit} = 0.125E \] The profit can also be calculated as: \[ \text{Profit} = \text{Total Revenue} - \text{Total Expenses} = 4300 - E \] Setting the two equations for profit equal: \[ 0.125E = 4300 - E \] Rearranging gives: \[ 1.125E = 4300 \] \[ E = \frac{4300}{1.125} \approx 3822.22 \text{ crore} \] ### Final Answer The total expense for FY 2014-15 is approximately ₹3822.22 crore.
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