Company A was running at a loss of 2lakhs in FY 2023. This is 10% of the revenue. Next year company wants to gain a profit of 20%, What should be final revenue for nest year?

To calculate the final revenue for the next year, we can follow these steps:

1. **Current Year Loss and Revenue**:  
   In FY 2023, the company had a loss of ₹2,00,000, which represents 10% of the revenue.  
   Therefore, the revenue in FY 2023 is:

   \[
   \text{Revenue for FY 2023} = \frac{2,00,000}{0.10} = ₹20,00,000
   \]

2. **Profit Target for Next Year**:  
   The company wants to make a profit of 20% in the next year.  
   This means the company aims to have its revenue cover both the expenses (i.e., last year's revenue since they were running at a 10% loss) and an additional 20% profit on top of that.

   Let \( R_{\text{next year}} \) be the required revenue for the next year.

   - The expenses will still be ₹20,00,000.
   - The desired profit is 20% of this revenue, or \( 0.20 \times R_{\text{next year}} \).

3. **Revenue Equation**:  
   To achieve a profit of 20%, the revenue should cover both the expenses and the profit:

   \[
   R_{\text{next year}} = 20,00,000 + 0.20 \times R_{\text{next year}}
   \]

4. **Solving for \( R_{\text{next year}} \)**:  
   Rearranging the equation:

   \[
   R_{\text{next year}} - 0.20 \times R_{\text{next year}} = 20,00,000
   \]

   \[
   0.80 \times R_{\text{next year}} = 20,00,000
   \]

   \[
   R_{\text{next year}} = \frac{20,00,000}{0.80} = ₹25,00,000
   \]

Therefore, the company needs a revenue of ₹25,00,000 in the next year to achieve a 20% profit.

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Would you like more details on the solution or any specific part? Here are 5 related questions to think about:

1. What would be the revenue target if the company wanted a 30% profit instead?
2. How would the target change if the company had a larger loss percentage, say 15%?
3. What would be the expenses next year if the company achieves its target revenue of ₹25,00,000?
4. How can changes in costs impact the required revenue for the desired profit?
5. What strategies can a company use to increase revenue to meet profit targets?

**Tip**: Always ensure to include fixed costs and variable costs when projecting future revenues to meet profit goals.

Company A was running at a loss of 2 lakhs in FY 2023. This is 10% of the revenue. Next year, the company wants to gain a profit of 20%. What should be the final revenue for the next year?

Find out how to calculate the required revenue for Company A to achieve a 20% profit next year. Given a 2-lakh loss, representing 10% of the revenue in FY 2023, learn the step-by-step process to determine the target revenue of ₹25,00,000. Ideal for students in Grades 9-12, covering key algebra and percentage concepts.

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