XAT 2010 Question 89

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 89

If between Jan - Mar 2009 and Apr - Jun 2009 sales of Paharpur Cement increased from 543278 to 698236 and that of Bahsin Cement decreased from 526532 to 499874, then which of the following is true?

Solution

For Jan- Mar 2009 Paharpur cement 

Sales Quantity = 543278 

Cost as percentage of revenue = 87.56 % 

Profit as a percentage of revenue = 100-87.56

                                                   = 12.44 % 

Profit = (12.44/100)* 543278 *304

         = 20545470

Profit rate = 37.82

For Jan- Mar 2009 Bahsin Cement 

Sales Quantity = 526532 

Cost as percentage of revenue = 91.34 % 

Profit as a percentage of revenue = 100-91.34 

                                                   = 8.66 % 

Profit = (8.66/100)* 526532*440

         = 20062975.3

Profit rate = 30.5

For Apr- Jun 2009 Paharpur cement 

Sales Quantity = 698236

Cost as percentage of revenue = 91.03% 

Profit as a percentage of revenue = 100-91.03

                                                   = 8.97 % 

Profit = (8.97/100)* 698236*340

         = 21294801.53

Profit rate = 30.5

For Apr- Jun 2009 Bahsin Cement 

Sales Quantity = 499874

Cost as percentage of revenue = 89.96% 

Profit as a percentage of revenue = 100-89.96 

                                                   = 10.04 % 

Profit = (10.04/100)* 499874*430

         = 21580560.33

Profit rate = 43.17

Hence E is the correct answer



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

    Comments

    Register with

    OR

    Boost your Prep!

    Download App