CAT 2022 Slot 2 — DILR Question 11
Answer the next 5 questions based on the information given below:
The two plots below show data for four companies code-named A, B, C, and D over three years - 2019, 2020, and 2021.
The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs.100 crores in revenue and spent Rs.30 crores. The profit of a company is defined as its revenue minus its costs.
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The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had 250 employees at the start of 2021, and 30 new employees joined the company during the year.
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Considering all three years, which company had the highest annual profit?
Answer & solution
- A
Company D
Company C
- C
Company B
- D
Company A
The given data can be tabulated as given below:
Income / Expense / Profit
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Employees
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Cumulative profit of 3 years for
A = 5 + 25 + 30 = Rs. 60 crores profit
B = 25 + 50 + 0 = Rs. 75 crores profit
C = 5 + 10 + 70 = Rs. 85 crores profit
D = 10 – 30 + 0 = Rs. 20 crores loss
Highest cumulative profit if for company C.
Hence, option (b).