CAT 2022 Question Paper (Slot 2) - LRDI Question 11


The two plots below show data for four companies code-named A, B, C, and D over three years - 2019, 2020, and 2021.

The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs.100 crores in revenue and spent Rs.30 crores. The profit of a company is defined as its revenue minus its costs

The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had 250 employees at the start of 2021, and 30 new employees joined the company during the year.

Question 11

Considering all three years, which company had the highest annual profit?


It is given,

Company A:

Revenue = 240 and cost incurred = 180

Profit = 240 - 180 = 60

Company B:

Revenue = 220 and cost incurred = 145

Profit = 220 - 145 = 75

Company C:

Revenue = 195 and cost incurred = 110

Profit = 195 - 110 = 85

Company D:

Revenue = 140 and cost incurred = 160

No profit.

Company C had the highest annual profit.

The answer is option D.

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