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Directions for Question: Answer the questions on the basis of the information given below.
The graphs given below show the revenues and profits of four IT education companies.
Profitability = (Profit/Revenue)
(2014)
 
Total cost = Revenue – Profit Revenues
                                      Profits

Q. In 2002, if the cost in each company increased by 10% over 2001 and the revenue for each company decreased by 10% over 2001, what is the approximate profitability of all the companies taken together in 2002?
  • a)
    10.25%
  • b)
    –10.25%
  • c)
    –9.25%
  • d)
    8.75%
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Directions for Question:Answer the questions on the basis of the infor...
Total revenues of four companies in 2001 = 509 + 285 + 231 + 523
= 1548 crore
Total profit of four companies in 2001 = 20 + 54 + 51 + 27 = 152 crore
∵ Total cost = Revenue – Profit
∴ Total cost = (1548 – 152) = 1396 crore In 2002, total revenue ≈  (1548 – 155) crore
After decrease by 10% = 1393 crore.
Total cost = (1396 + 140) = 1536 crore
After increasing by 10%
Hence, net profit = (1393 – 1536) = – 143 crore
∴ Profitability = -143 / 1393 = -10.25%
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Directions for Question:Answer the questions on the basis of the information given below.The graphs given below show the revenues and profits of four IT education companies.Profitability = (Profit/Revenue)(2014)Total cost =Revenue – Profit Revenues ProfitsQ.In 2002, if the cost in each company increased by 10% over 2001 and the revenue for each company decreased by 10% over 2001, what is the approximate profitability of all the companies taken together in 2002?a)10.25%b)–10.25%c)–9.25%d)8.75%Correct answer is option 'B'. Can you explain this answer?
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Directions for Question:Answer the questions on the basis of the information given below.The graphs given below show the revenues and profits of four IT education companies.Profitability = (Profit/Revenue)(2014)Total cost =Revenue – Profit Revenues ProfitsQ.In 2002, if the cost in each company increased by 10% over 2001 and the revenue for each company decreased by 10% over 2001, what is the approximate profitability of all the companies taken together in 2002?a)10.25%b)–10.25%c)–9.25%d)8.75%Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions for Question:Answer the questions on the basis of the information given below.The graphs given below show the revenues and profits of four IT education companies.Profitability = (Profit/Revenue)(2014)Total cost =Revenue – Profit Revenues ProfitsQ.In 2002, if the cost in each company increased by 10% over 2001 and the revenue for each company decreased by 10% over 2001, what is the approximate profitability of all the companies taken together in 2002?a)10.25%b)–10.25%c)–9.25%d)8.75%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions for Question:Answer the questions on the basis of the information given below.The graphs given below show the revenues and profits of four IT education companies.Profitability = (Profit/Revenue)(2014)Total cost =Revenue – Profit Revenues ProfitsQ.In 2002, if the cost in each company increased by 10% over 2001 and the revenue for each company decreased by 10% over 2001, what is the approximate profitability of all the companies taken together in 2002?a)10.25%b)–10.25%c)–9.25%d)8.75%Correct answer is option 'B'. Can you explain this answer?.
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