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CAT 1993 — DILR Question 13

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Passage / Data

Ghosh Babu has recently acquired four companies namely Arc – Net Technologies (ANT), Babu Anta Transport (BAT), Charles Anter Tailor (CAT) and Daud Akbar Transistors (DAT). When the results of the companies for the year 1992 – 93 were placed before him. He found a few interesting things about them. While the profits of CAT and DAT were the same, the sales of CAT were the same as those of BAT . Profits of ANT were 10% of its sales, where as the profits of BAT were 20% of its sales. While the total expenses of CAT were 5 times its profits, sales of DAT were 3 times its profits. The total expenses of CAT were Rs.10,00,000, the total expenses of ANT were 10% less than those of CAT. Profits are defined as the difference between sales and total expenses.

Which company had the lowest sales?

Answer & solution

  • A

    ANT

  • B

    BAT

  • C

    CAT

  • DAT

Solution

Let the profits of CAT and DAT be x, Sales of CAT and BAT be y and sales of ANT be z. So we have

​​​​​​​​​​​​​​

Now, it is said that the total expenses of CAT were Rs.10 lakhs. Thus, 5x = Rs.10 lakhs or x = Rs.2 lakhs. Also, total expenses of ANT were 10% less than those of CAT = Rs.9 lakhs. Hence, 0.9z = 9 lakhs or z = 10 lakhs. Finally, in case of CAT, since Sales – Expenditure = Profit, Sales = Expenditure + Profit = 6x = 12 lakhs, y = 12 lakhs.
Our final table will become:

​​​​​​​​​​​​​​

From the above table, it can be seen that the company that had the lowest sales is DAT viz. Rs.6 lakhs.

CAT 1993 DILR Q13: Which company had the lowest sales? — Solution | TheCATExam