Instructions

Read the situation below and answer the 3 associated questions:
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.

Question 43

Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.

From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST supports Jagdeep’s decision.

Solution

Statement 3 mentions that the eggless varieties of Le Baguette contain minute traces of egg. This doesn't support the decision taken by Jaydeep. Statement 5 doesn't mention anything about the Ramnagar market for eggless products. Therefore, this neither supports nor weakens the decision. Statements 1, 2 and 4 mention the market value of eggless products in Le Baguette and Ramnagar. Thus, statements 1, 2 and 4 support the decision taken by Jaydeep.

The answer is option C.

Create a FREE account and get:

All Quant Formulas and shortcuts PDF
XAT previous papers with solutions PDF
XAT Trial Classes for FREE

CAT Quant Questions | CAT Quantitative Ability

CAT Quadratic Equations Questions CAT Inequalities Questions CAT Averages Questions CAT Linear Equations Questions CAT Percentages Questions

CAT DILR Questions | LRDI Questions For CAT

CAT Quant Based DI Questions CAT Table with Missing values Questions CAT Selection With Condition Questions CAT Charts Questions CAT Routes And Networks Questions

CAT Verbal Ability Questions | VARC Questions For CAT

CAT Reading Comprehension Questions CAT Verbal Ability Questions CAT Critical Reasoning Questions CAT Odd One Out Questions CAT Vocabulary Questions

XAT 2020

CAT Quant Questions | CAT Quantitative Ability

CAT DILR Questions | LRDI Questions For CAT

CAT Verbal Ability Questions | VARC Questions For CAT

Free Topicwise Questions

Login to your Cracku account

Hello! 👋

Ready to Unlock Your Success?

Please Enter Your OTP

Please enter the following details

Create a free Cracku account