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Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.
Q. How much profit did Company A make?
  • a)
    Rs. 60 crores
  • b)
    Rs. 50 crores
  • c)
    Rs. 25 crores
  • d)
    Rs. 30 crores
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The ...
  • Total revenues are Rs. 1800 crores.
  • Overall profit margin is 10%
  • Overall profit is Rs. 180 crores.
  • Exactly one division has the same profit margin as the overall Company. So, for this division, share of revenues should be equal to share of profits. Or, one of Company A or D has a profit margin of 10%
  • Let us also compute absolute profit numbers the 5 numbers are Rs. 35 crores, Rs. 40 crores, Rs. 25 crores, Rs. 30 crores and Rs. 50 crores
  • The division with the largest revenue has the least profit margin but not the least profits: So, E has the least profit margin but not the least profits. Company D generates more profits than Company E, so Company E does not generate the least profit either
  • So, Company E should generate profits of Rs. 35 crores or Rs. 40 crores.
  • Now, this is the critical statement - "The division with the profit margin higher than all others generates the least profit? Company C has the least revenue, and by a distance. So, it is possible that division C should have the highest profit margin. The lowest profit margin for division C should be 16.67%, Now, if the Rs. 25 crore profit were for any other division, the profit margin of that division would be less than 16.67%. This tells us that the Rs. 25 crore profit is made by division C at a profit margin of 16.67%.
  • So this is where we stand now
  • The three missing profit numbers are Rs. 50 crores, Rs. 40 crores and Rs. 35 crores
  • Company E did not generate profit of Rs. 50 crores. So, the Rs. 50 crore profit number should have been seen by either B or D. If it had been D, then D would also have had a profit margin of 16,67%. But this is not possible as the question says - "The division with the profit margin higher than all others generates the least profit. The above statement tells us that no company apart from C had a profit margin of 16.67% or more. So, Company B should have seen a profit of Rs. 50 crores.
  • Company D generates more profit than E so E should have seen a profit of 35 crores and D a profit of Rs 40 crores 
  • Therefore, the Profit that Company A made is equal to 30 crores
 
 
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Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.Q.How much profit did Company A make?a)Rs. 60 croresb)Rs. 50 croresc)Rs. 25 croresd)Rs. 30 croresCorrect answer is option 'D'. Can you explain this answer?
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Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.Q.How much profit did Company A make?a)Rs. 60 croresb)Rs. 50 croresc)Rs. 25 croresd)Rs. 30 croresCorrect answer is option 'D'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.Q.How much profit did Company A make?a)Rs. 60 croresb)Rs. 50 croresc)Rs. 25 croresd)Rs. 30 croresCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.Q.How much profit did Company A make?a)Rs. 60 croresb)Rs. 50 croresc)Rs. 25 croresd)Rs. 30 croresCorrect answer is option 'D'. Can you explain this answer?.
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