CAT 2019 Slot 2 — DILR Question 17
Answer the following questions based on the information given below.
A large store has only three departments, Clothing, Produce, and Electronics. The following figure shows the percentages of revenue and cost from the three departments for the years 2016, 2017 and 2018. The dotted lines depict percentage levels. So for example, in 2016, 50% of store's revenue came from its Electronics department while 40% of its costs were incurred in the Produce department.
In this setup, Profit is computed as (Revenue – Cost) and Percentage Profit as Profit/Cost × 100%.
It is known that
- The percentage profit for the store in 2016 was 100%.
- The store’s revenue doubled from 2016 to 2017, and its cost doubled from 2016 to 2018.
- There was no profit from the Electronics department in 2017.
- In 2018, the revenue from the Clothing department was the same as the cost incurred in the Produce department.
What was the ratio of revenue generated from the Produce department in 2017 to that in 2018?
Answer & solution
- A
4 : 3
8 : 5
- C
16 : 9
- D
9 : 16
Let the total cost of the store in 2016 be 100.
From (1): Total revenue in 2016 = 2 × Total cost in 2016 = 2 × 100 = 200.
From (2): Total revenue in 2017 = 2 × Total revenue in 2016 = 2 × 200 = 400.
From (2): Total cost in 2018 = 2 × Total cost in 2016 = 2 × 100 = 200.
So, we can find the department wise revenue in 2016 and 2017 and cost in 2016 and 2018 using the percentages found from the radar graph.
From (3): Cost from Electronics in 2017 = Revenue from Electronics in 2017 = 120.
So total cost in 2017 = 120/40% = 300. And hence the department wise costs can be found for 2017.
From (4): Revenue from Clothing department in 2018 = Cost for the Produce departement in 2018 = 100.
So total revenue in 2018 = 100/40% = 250.
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Revenue generated from the Produce department in 2017 to that in 2018 = 160 : 100 = 8 : 5.
Hence option (b).