b) A trading corporation distributed 8% of its net profit equally among its 120 employees
last year. If each employee received Rs 24,000 bonus, how much net profit did the
corporation make in the last year?



Answer :

To determine the net profit of the corporation based on the given information, we can follow these steps:

1. Identify the given quantities:
- Each employee received a bonus of Rs 24,000.
- There are 120 employees.
- The bonus distributed is 8% of the net profit.

2. Calculate the total bonus distributed:
To find the total amount of bonus distributed, we multiply the bonus per employee by the number of employees.

[tex]\[ \text{Total Bonus} = \text{Bonus per Employee} \times \text{Number of Employees} \][/tex]

Substituting the given values:

[tex]\[ \text{Total Bonus} = 24,000 \times 120 \][/tex]

[tex]\[ \text{Total Bonus} = 2,880,000 \][/tex]

So, the total bonus distributed among all employees is Rs 2,880,000.

3. Relate the total bonus to the net profit:
Since the total bonus distributed is 8% of the net profit, we can represent this relationship mathematically as:

[tex]\[ \text{Total Bonus} = 8\% \times \text{Net Profit} \][/tex]

We can express 8% as a decimal for calculation purposes:

[tex]\[ 8\% = \frac{8}{100} = 0.08 \][/tex]

So, we rewrite the equation:

[tex]\[ 2,880,000 = 0.08 \times \text{Net Profit} \][/tex]

4. Solve for the net profit:
To find the net profit, we need to isolate it on one side of the equation. We do this by dividing both sides of the equation by 0.08.

[tex]\[ \text{Net Profit} = \frac{2,880,000}{0.08} \][/tex]

Performing the division:

[tex]\[ \text{Net Profit} = 36,000,000 \][/tex]

Therefore, the corporation made a net profit of Rs 36,000,000 in the last year.