Concept: The question tests on the conceptual knowledge in Profit/Loss as a Topic

Solution:
 

A NEW OG 2021 QUESTION

P= I − C is given

For each of first 4 months C = I + 32,000 (given) => Profit for first 4 months (P) = I-(I+32000)

= -32000 (Negative sign indicates a loss)
Total loss in the first 4 months = 4*32000

=$ - 128,000

For each of the next 3 months, I = C + 36,000

=>C=I-36000

=>Profit for each of the next 3 months (P) = I-(I-36000)

=36000

Total profit for the 3 months = 3*36,000

=$108,000

For each of the 5 remaining months of the year, I = C + 10,000

=> C=I -10,000

Profit for the 5 remaining months of the year(P) = I-(I-10,000)

=10,000

Total profit in these 5 months = 5*10,000
= $50,000

Thus, the total profit for 12 months

=-128000 + 108000 + 50,000

= $30,000 (option b)