Figure 3 depicts the pie chart indicating the percentage distribution of per unit steel price over the period of eight years from 2005 to 2012. The average per unit price of steel from 2005 to 2012 = Rs. 11. (Absolute per unit steel prices can be rounded off to nearest
integer value).
Figure 4 depicts the revenue & profit of a steel manufacturing company respectively. There is no fixed cost component and all units of steel produced is sold in the same year. Answer the questions given below:
If in 2013 revenue ha increased by 25 percent, profit has decrea ed by 25 percent and per unit steel price has increa ed by 10 percent as compared to that in 2012. What is the approximate quantity of teel being old in 2013?
First, we need to find the prices of units of steel from 2005 to 2012. 88 is the sum of prices, and 11 is the average across 8 years.
In 2005, it is equal to 11.36/100 * 88 = 10.
Similarly, calculating for other years, we get:
The steel prices for 2005 - 12 are 10, 14, 12, 12, 8, 10, 14, 8, respectively, and the revenues are 1000, 1600, 1200, 1400, 800, 800, 1200, 1100.
In 2013, the revenue increased by 25% => New revenue = 1100 * 1.25 = 1375.
The price increased by 10% => 8 * 1.1 = 8.8
=> The required quantity = Revenue / per unit price = 1375 / 8.8 = 156.25.
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