XAT 2020 — Decision Making Question 6
Read the following paragraph carefully and answer the question that follows:
Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.
Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
- Eggless products account for 30% of Le Baguette’s sales.
- At least 20% of all bakery sales in Ramnagar is from eggless products.
- The eggless varieties of Le Baguette contain minute traces of egg.
- Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
- Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST supports Jagdeep’s decision.
Answer & solution
- A
4, 3, 2
- B
5, 4, 1
- C
2, 1, 3
2, 4, 1
- E
5, 2, 1
Step 1 talks about the revenue obtained from eggless products while step 2 mentions the sales of eggless products in Ramnagar. So both are valid points. Step 3 is incorrect as if a product contains minute traces of egg, it cannot be called eggless. This eliminates options 1 and 3. Option 4 also gives a valid point for starting an eggless bakery in Ramnagar. Step 5 is not related to eggless products at all as Le Croissant does not offer eggless varieties. Thus options 2 and 5 are also incorrect.
Hence, option (d).