XAT 2010 Question 88

Instructions

Answer thequestions based on the data given in table 2

Cost and price data for Portland cement manufactured by Paharpur Cement and Bahsin Cement, for four consecutive quarters, are given in table 2:


Sales Revenue = Price × Sales Quantity
Profit = Sales Revenue – Cost
Profit Rate = Profit / Sales Quantity

Question 88

Profit rate of Paharpur Cement is more than the profit rate of Bahsin Cement in:

Solution

Let (Costs / Sales Revenue) * 100 = x%

(Profit / Sales Revenue) * 100 = (100-x) % 

(Profit / Sales Revenue) = (100-x) /100 % 

(Profit / Price * Sales Quantity) =(100-x) /100 % 

Profit / Sales Quantity =[(100-x) /100]* Price  

On tabulating the Profit rate of both the factories , we get 

Clearly C is the correct answer



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