CAT 2003 Slot 2 — DILR Question 33
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.
Which company recorded the highest operating profit in F.Y. 2002-03?
Answer & solution
- A
A
- B
C
E
- D
F
Operating Profit = × Operating Income
Operating Profit for A = = 14.25
Operating Profit for C = = 30
Operating Profit for E = = 35
Operating Profit for F = = 19.8
Hence, option (c).
Alternatively,
Among the given choices, the operating profit is almost same for all but the profitability is the highest for E.
∴ E should have the highest operating profit in 2002-03.
Hence, option (c).