Instructions

Answer the questions with the given information and the data.

The figures given below show the amount of work distribution (in operational hours) for a toy manufacturing company having manufacturing plants in Chennai and Kanpur. Each plant carries out six activities. Planned operational cost per hour of Chennai and Kanpur plants are ₹ 250 and %₹300 respectively. However, the actual operational cost per hour is ₹ 270 in Chennai and ₹ 315 in Kanpur.

Cost Difference (in %)=Absolute ((Actual Cost —- Planned Cost) / Planned Cost) x 100

Question 70

In how many activities plant in Chennai could meet at least 50% shortfall in the actual operational hours compared to planned operational hours of plant in Kanpur ?

Solution

In Activity 1, 50% shortfall of planned and actual in Kanpur is 25. Excess in chennai is 25. Hence this activity is counted.

In Activity 2 there is no shortfall

In Activity 3, the 50% shortfall is 50. Excess in chennai is 28. Hence this is incorrect

In Activity 4 and 5 there is no shortfall

In Activity 6 the 50% shortfall is 25. Excess in Chennai is 78. Hence, this activity is counted.


Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 40+ previous papers with solutions PDF
  • Top 500 MBA exam Solved Questions for Free

cracku

Boost your Prep!

Download App