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DI: Worksheet: 03

DIRECTIONS for questions 1 to 5: These questions are


based on the following two graphs which represent the total
cost incurred and total sales earned by a company by
selling two products A and B.

PRODUCT A
50
Amount (in rupees thousands)

45
45
40 37

35 30
30
25 22
25
20 15 22
15 12 20
15 17
10 10
5 10 10 10 10 10
7
0
100 200 300 400 500 600
No. of units

Total sales Total cost Fixed cost

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DI: Worksheet: 03

PRODUCT B 60
60
55 50
Amount (in rupees thousands)

50
50
45 40
40 35 45
35 30 40
30 25
30
25
20 20
15 20 20 20 20 20 20
10
10
5
0
100 200 300 400 500 600
No. of units

Total sales Total cost Fixed cost

Note :
The point at which the total cost of a product is equal to
its total sales is called the break-even point.
The costs which change with units of production are
called variable costs and the costs which remain the
same for any number of units are fixed costs.

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DI: Worksheet: 03
Total cost = Total fixed cost + Total variable
cost
Total contribution = Total sales Total variable cost
Profit = Total sales Total cost
1. Find the average profit per unit of product A at the
same level of production for which product B reached
its break-even point.
(1) Rs.50
(2) Rs.37.5
(3) Rs.25
(4) Rs. 0
2. How many units of each of the products A and B should
be sold by the company to have break-even on the
whole?
(1) 200
(2) 250
(3) 300
(4) 360
3. If the selling prices per unit of the products A and B are
interchanged, then what will be the total contribution of
product A at its original break-even point, other things
remaining constant?
(1) Rs.50,000
(2) Rs. 10,000
(3) Rs. 15,000
(4) Rs. 12,500

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DI: Worksheet: 03
4. At the end of one year, the companys profit was
Rs.8,00,000 of which, 46.25% was contributed by
product A. How many units of product B did the
company sell in that year, given that every unit
produced is sold? (Assume that the graphs shown to
continue the straight line trends they follow above
indefinitely)
(1) 9000
(2) 90,000
(3) 900
(4) Cant be determined
5. The finance manager of the company, while making a
sensitivity analysis of the cost structuring was
contemplating the situation where in the fixed cost of
the two products - A and B, increased by Rs. 10,000
each. If other values remain constant, then at what level
of sales (in units) will the contribution of the product A
be twice its fixed cost?
(1) 1,600
(2) 2,400
(3) 4000
(4) 800

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DI: Worksheet: 03
DIRECTIONS for questions 6 to 10: Answer these questions
on the basis of the information given.
The following graph and table give information regarding the
sales of mobiles by the company SMS and the total market
sales of mobiles during the period 1995 to 2004.
70% 66.66%
60%
60%
50% 60%
50% 45%
50%
40%
40% 40%
37.5%
30% 33.33%
20%
16%
20% 15% 15% 16.25%
6.66% 16%
10%
12% 10% 11%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Year
The percentage market share of the company SMS in the total market sales (by value)
Profit of the company SMS as a percentage of its sales

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DI: Worksheet: 03
Total market Average selling price
Year sales of mobiles per mobile of the
(Rs. Crore) company SMS (Rs.)
1995 1600 4000
1996 2500 5000
1997 2000 3000
1998 4000 2500
1999 4800 3200
2000 4000 2400
2001 4500 3000
2002 3000 3200
2003 4000 4000
2004 5000 5000

Note: The Company SMS sells only mobiles.


6. If in the year 2001, the sales of the mobiles of SMS
form 25% by volume of the total market sales of
mobiles, what is the average selling price per mobile of
all the other companies together in that year?
(1) Rs.200
(2) Rs.1500
(3) Rs.2000
(4) Cannot be determined
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DI: Worksheet: 03
7. In how many of the years from 1996 to 2004, did the
value of the sales of the mobiles of SMS increase and
the profit of SMS decrease over the previous year?
(1) less than 5
(2) 5
(3) 6
(4) more than 6
8. The ratio of the profit earned by SMS in the year 2000
to that in 2004 is
(1) 5 : 4
(2) 7 : 6
(3) 8 : 9
(4) 9 : 10
9. If the percentage share by volume of the sales of the
mobiles of SMS in the total sales of the market grew by
10 percentage points from 1998 to 1999, find the
percentage change in the total volume of sales of
mobiles in the market from 1998 to 1999.
(1) 20% increase
(2) 25% decrease
(3) 20% decrease
(4) Cannot be determined

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DI: Worksheet: 03
10. If in any year, the average selling price per mobile in
the total market is less than that of the mobiles of SMS,
then in at least how many of the given years was the
market share by volume of SMS less than 50% of the
total market?
(1) 4
(2) 5
(3) 6
(4) 7

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DI: Worksheet: 03
DIRECTIONS for question 11 to 14 the bar graphs show the
number of Industrial licence holders in different sectors for
year 2001 to 2004. Refer to the following graphs to answer
the questions that follow.

Number of licence holders in 2001

1280

700 650
420

Iron Engg. Plastic Agriculture


Industries

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DI: Worksheet: 03

Number of licence holders in 2002

1400

850
670
450

Iron Engg. Plastic Agriculture


Industries

Number of licence holders in 2003


1500

900
780

475

Iron Engg. Plastic Agriculture


Industries

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DI: Worksheet: 03

Number of licence holders in 2004

1600

985
840
525

Iron Engg. Plastic Agriculture


Industries

11. The number of newly issued licences to the


Engineering Industries between 2001 and 2003 forms
approximately what percent of the number of newly
issued licences to the Iron Industries during the same
period?
(1) 91%
(2) 105.25%
(3) 123.4%
(4) 80%

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DI: Worksheet: 03
12. Which of the following industries had the highest
percentage increase in the number of licence holders
over the given four year period?
(1) Iron
(2) Engineering
(3) Plastic
(4) Agriculture
13. If the average cost of setting up a new Agriculture unit
is Rs.20 lakh while for maintaining an existing unit is
Rs. One lakh per annum, then what was the average
expenditure of an Agricultural unit in the year 2002?
(1) Rs. 2.00 lakh
(2) Rs. 2.3 lakh
(3) Rs. 11.45 lakh
(4) Rs. 1.6 lakh
14. Due to a new government regulation in Plastic
industries in year 2003, 40% of the new units in Plastic
industries (in 2003) and 20% of the existing units in the
Plastic sector were forced to shut down due to non-
conformance with the new environmental laws. What
percent of the total Plastic industries remained
unaffected?
(1) 66.6%
(2) 24.1%
(3) 61.3%
(4) 78.9%

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DI: Worksheet: 03
DIRECTIONS for questions 15 to 19: Answer these question
on the basis of the information given.
The following graph gives the percentage of young people
and middle-aged people in the four regions of a state, as a
percentage of the total population of the respective region.
45
40
40
35 35
35
30 30 30
30
Percentage

25
25
20
20
15
10
5
0
North East West South
Region

Young People Middle-aged People

Note: The population is classified into people of only three


age groups - young people, middle-aged people and
old people.

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DI: Worksheet: 03
15. If the number of old people in the Southern region
exceeds the number of old people in the Eastern region
by 20%, by approximately what percentage does the
number of young people in the Southern region exceed
that in the Eastern region?
1
(1) 66 /6%
2
(2) 86 /3%
1
(3) 96 /6%
(4) Cannot be determined
16. If the total population of the Western region is 20%
more than that of the Northern region, the number of
middle-aged people in the Northern region forms what
percentage of the number of old people in the Western
region?
1
(1) 16 /6%
1
(2) 33 /3%
(3) 55%
(4) Cannot be determined
17. If the number of middle-aged people in each of the four
regions is the same, then the number of young people
is the greatest in the
(1) Northern region.
(2) Eastern region.
(3) Western region.
(4) Southern region.

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DI: Worksheet: 03
18. If the respective number of young people in the
Northern, Eastern, Western and the Southern regions
are in the increasing order and the number of old
people in these regions are denoted by a, b, c and d
respectively, then which of the following is always true?
(1) a < b
(2) b < c
(3) c < d
(4) None of these
19. If the total population of the Northern and the Western
regions put together is equal to that of the Eastern and
the Southern regions put together, and x is the total
middle-aged population in the Northern and Western
regions put together and y is the total middle-aged
population in Eastern and Southern regions put
together, then which of the following is always true?
(1) x = y
(2) x > y
(3) x < y
(4) None of these

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