CAT 1998 — QA Question 43
Answer the next 2 questions based on the following information.
A company purchases components A and B from Germany and USA respectively. A and B form 30% and 50% of the total production cost. Current gain is 20%. Due to change in the international scenario, cost of the German mark increased by 30% and that of USA dollar increased by 22%. Due to market conditions, the selling price cannot be increased beyond 10%.
Direction: Each question is followed by two statements, I and II. Answer the questions based on the statements and mark the answer as
1. if the question can be answered with the help of any one statement alone but not by the other statement.
2. if the question can be answered with the help of either of the statements taken individually.
3. if the question can be answered with the help of both statements together.
4. if the question cannot be answered even with the help of both statements together.
A circle circumscribes a square. What is the area of the square?
I. Radius of the circle is given.
II. Length of the tangent from a point 5 cm away from the centre of the circle is given.
Answer & solution
Answer: 2

Statement I itself is sufficient to answer the question.
As, if we know the radius of the circle we can find out the length of the diagonal of the square (which will be the diameter) and if we know the diagonal of a square we can find the length of its sides and hence the area. Again the second statement in itself can answer the question. As, from the data that is given we can find
the radius of the circle and hence the area of the square (as given before). This can be explained from the diagram given. Since the tangent makes a right angle with the radius at the circumference, the triangle is a right-angled triangle. Hence, A2 = 52 + r2. Hence, knowing the value of A, we can find out r. Hence, both statements in itself can answer the question.
Therefore, the answer is (b).