XAT 2010 Question 90

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 90

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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