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CAT 2024 Slot 2 — DILR Question 16

Bubble ChartsEasy
Passage / Data

Answer the following questions based on the information given below.

The two plots below give the following information about six firms A, B, C, D, E, and F for 2019 and 2023.

PAT: The firm’s profits after taxes in Rs. crores,
ES: The firm’s employee strength, that is the number of employees in the firm, and
PRD: The percentage of the firm’s PAT that they spend on Research and Development (R&D).

In the plots, the horizontal and vertical coordinates of the point representing each firm give their ES and PAT values respectively. The PRD values of each firm are proportional to the areas around the points representing each firm. The areas are comparable between the two plots, i.e., equal areas in the two plots represent the same PRD values for the two years.

Firms plot 2019

Firms plot 2023

Approximate 2019 readings (ES on the horizontal axis, PAT on the vertical axis; bubble size ∝ PRD):

Firm (2019)ES (approx.)PAT (approx.)Bubble size (PRD)
A8003000medium
B10002800medium-large
C6002400medium
D6003900small
E12002500large
F8002500small

Which among the firms A, C, E, and F had the maximum PAT per employee in 2023?

Answer & solution

  • Firm C

  • B

    Firm E

  • C

    Firm F

  • D

    Firm A

Solution

Medium

PAT per employee =PATES=\dfrac{\text{PAT}}{\text{ES}}. Read the 2023 vertical (PAT) and horizontal (ES) coordinates for each firm and compare the quotient.

2023 readings (PAT == vertical coordinate, ES == horizontal coordinate):

FirmES 2023PAT 2023
A13003900
C8003000
E14003500
F10003200
1

Form PAT per employee for each firm. Divide the 2023 PAT by the 2023 ES (from the Set-up table).

A: 39001300=3.00(from chart)⇒ C: 3000800=3.75⇒ E: 35001400=2.50⇒ F: 32001000=3.20\begin{aligned} &A:\ \dfrac{3900}{1300}=3.00 \quad\text{(from chart)}\\ &\Rightarrow\ C:\ \dfrac{3000}{800}=3.75\\ &\Rightarrow\ E:\ \dfrac{3500}{1400}=2.50\\ &\Rightarrow\ F:\ \dfrac{3200}{1000}=3.20 \end{aligned}
2

Pick the maximum. The largest ratio is Firm C's 3.753.75 — the smallest workforce paired with a healthy PAT.

3.75  (C)  >  3.20  (F)  >  3.00  (A)  >  2.50  (E)\begin{aligned} &3.75\;(C)\;>\;3.20\;(F)\;>\;3.00\;(A)\;>\;2.50\;(E) \end{aligned}
Firm C\text{Firm C}
CAT 2024 Slot 2 DILR Q16: Which among the firms A, C, E, and F had the maximum PAT per employee in 2023? — Solution | TheCATExam