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XAT 2015 — QA & DI Question 13

PercentageEasy

The tax rates for various income slabs are given below.

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There are 15 persons working in an organization. Out of them, 3 to 5 persons are falling in each of the income slabs mentioned above. Which of the following is the correct tax range of the 15 persons? (E.g. If one is earning Rs. 2000, the tax would be: 500 × 0 + 1500 × 0.05)

Answer & solution

  • 1350 to 7350, both excluded

  • B

    1350 to 9800, both included

  • C

    2175 to 7350, both excluded

  • D

    2175 to 9800, both included

  • E

    None of the above

Solution

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Total tax will be minimum if income of 5 persons is not more than 500 and income of 4 persons is minimum and also in the range (500, 2000]. Total tax will be maximum if income of 5 persons is maximum possible and income of 4 persons is maximum in the range (2000, 5000].

Minimum tax > (5 × 0) + (4 × 0) + (3 × 75) + (3 × 375) = Rs. 1350

Maximum tax range < (3 × 0) + (3 × 75) + (4 × 375) + (5 × 1125) = Rs. 7350

Hence, option (a).

XAT 2015 QA & DI Q13: The tax rates for various income slabs are given below. ​​​​​​​ There are 15 persons working in — Solution | TheCATExam