Instructions

Given below are the detailed characteristics of select India industries. Answer the question on the basis of the following data.


Question 13

If gross value added is defined as the sum of net value added and depreciation, then the difference in the gross value added per worker is maximum between which of the following pairs?

Solution

Gross value added is defined as the sum of net value added and depreciation.

Let's calculate gross value added per worker for all industries:

Industry 1: (3178+41)/9066 = 0.35 lakhs 

Industry 2: (2284+149)/877 = 2.77 lakhs

Industry 3: (23640+6667)/5656 = 5.35 lakhs

Industry 4: (5831+1044)/1099 = 6.25 lakhs

Industry 5: (71739+25674)/7508 = 12.97 lakhs

Industry 6: (42434+3515)/3333 = 13.78 lakhs

Industry 7: (72290+11246)/15670 = 5.33 lakhs

Now checking the option one by one;

a) industry 6 -industry 3 = 13.78 - 5.35 = 8.43 lakhs

b) industry 7 -industry 1 = 5.33 - 0.35 = 4.98 lakhs

c) industry 5 -industry 2 = 12.97 - 2.77 = 10.2 lakhs

d) industry 6 -industry 4 = 13.78 - 6.25 = 7.53 lakhs

Hence the difference between industry 2 and 5 is maximum, hence option c is our answer.

Video Solution

video

Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 170+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free

cracku

Boost your Prep!

Download App