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CAT 2003 Slot 2 — DILR Question 35

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.

The average operating profit in F.Y. 2002-03, of companies with profitability exceeding 10% in F.Y. 2002-03, is approximately

Answer & solution

  • A

    17.5 crore

  • B

    25 crore

  • C

    27.5 crore

  • 32.5 crore

Solution

Companies with profitability exceeding 10% in F.Y.2002-03 are C and E.

The operating profits of C and E are 30 and 35 respectively from the earlier question

∴ Average operating profit = 30+352 = 32.5 crore

Hence, option (d).

CAT 2003 Slot 2 DILR Q35: The average operating profit in F.Y. 2002-03, of companies with profitability exceeding 10% in F.Y. 2002-03, i — Solution | TheCATExam