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CAT 2003 Slot 2 — DILR Question 32

Mixed PracticeEasy
Passage / Data

Answer the following question based on the information given below.

The profitability of a company is defined as the ratio of its operating profit to its operating income, typically expressed in percentage. The following two charts show the operating income as well as the profitability of six companies in the Financial Years (F.Y.s) 2001-02 and 2002-03.

The operating profits of four of these companies are plotted against their respective operating income figures for the F.Y. 2002-03, in the third chart given below.

What is the approximate average operating profit, in F.Y. 2001-2002, of the two companies excluded from the third chart?

Answer & solution

  • -7.5 crore

  • B

    3.5 crore

  • C

    25 crore

  • D

    Cannot be determined

Solution

The two companies that are excluded from the graph 3 are B and D.

∴ Operating Profit of B = (-4.2100×240) = -10.08

∴ Operating Profit of D = (-2.1100×250) = -5.25

Average operating profit of B and D in F.Y. 2001-2002 

=-10.08-5.252 = -7.6 crore

Hence, option (a).

Alternatively,

The two companies that are excluded from the third chart are B and D. These companies had a negative profitability in the year 2001-02.

∴ Only answer possible is option 1.

Hence, option (a).

CAT 2003 Slot 2 DILR Q32: What is the approximate average operating profit, in F.Y. 2001-2002, of the two companies excluded from the th — Solution | TheCATExam