CAT 1990 DILR Question

Instructions

The table below shows the estimated cost (in Rs. Lakh) of a project of laying a railway line between two places.


Question 61

The total expenditure is required to be kept within Rs. 700 lakh by cutting the expenditure on administration equally in all the years. What will be the percentage cut for 1989?

Solution

Total expenditure is = 52.1 + 267.5 + 196.4 + 209.5 = 725.5

So 25.5 will be cut off on administration equally in all years.

Hence in 1989 cut off will be $$\frac{25.5}{4} = 6.375$$

Percentage cut off will be = $$\frac{6.375}{15} \times 100 = 42.5$$


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