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
If between Apr - Jun 2009 and Jul - Sept 2009 sales of Paharpur Cement increased by 2.25%, its profit increased by
Solution
Let the Sales of Paharpur Cement during Apr - Jun 2009 be x
Therefore profit = [(100-91.03)*340*x]/100
= 30.498x
the Sales of Paharpur Cement during Jul- Sept 2009 increased by 2.25%
Therefore Sales of Paharpur Cement during Jul- Sept 2009 is 31.54x
Percentage increase in profit = (31.54x-30.498x)/30.498x
= 3.42%
Hence E is the correct answer
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