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 44

From a newspaper, Jagdeep has learnt that Americans use their own ovens to bake ready-to-bake products, sold by some bakeries. This idea is apparently catching up in Indian metros as well.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.

Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.


Statement 1 mentions the US market, which doesn't mention anything about the Indian market. Therefore, this cannot be the first in the order. Statement 2 mentions that there can be customers for ready-to-bake products if started by Jaydeep. Statement 3 mentions how the sales of ovens will increase in future. Statement 4 doesn't support the decision. Therefore, this will be the last in the order. Statement 5 mentions the Indian market for ready-to-bake products. The order will be 2, 3, 5, 1, and 4.

The answer is option D.

Create a FREE account and get:

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


    Boost your Prep!

    Download App