Instructions

The graph below shows total profit, labour cost and profit (in crore Rs.) of four different companies P, Q, R and S. Total cost is defined as the sum of labour cost and raw material cost. Read the graph and answer the questions.

Question 71

The company with the highest profit per rupee of sales is

Solution

For the total sales, we shall add the profit to the total cost incurred.

Hence, total sales for P,Q,R, and S respectively are 30, 35, 45, 85.

Now, profit per rupee of sales for each of the companies P, Q, R, and S respectively is 5/30, 10/35, 20/45, 10/85

Clearly, profit per rupee of sales is highest in R.


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