Answer the following question.
Ghosh Babu has recently acquired four companies namely Arc – Net Technologies (ANT), Babu Anta Transport (BAT), Charles Anter Tailor (CAT) and Daud Akbar Transistors (DAT). When the results of the companies for the year 1992 – 93 were placed before him. He found a few interesting things about them. While the profits of CAT and DAT were the same, the sales of CAT were the same as those of BAT . Profits of ANT were 10% of its sales, where as the profits of BAT were 20% of its sales. While the total expenses of CAT were 5 times its profits, sales of DAT were 3 times its profits. The total expenses of CAT were Rs.10,00,000, the total expenses of ANT were 10% less than those of CAT. Profits are defined as the difference between sales and total expenses.
Which company had the lowest sales?
Show Hint
- ANT
- BAT
- CAT
- DAT
The Correct Option is D
Solution and Explanation
- CAT and BAT had equal sales.
- CAT's total expenses = Rs. 10,00,000
- Profit = Sales - Expenses
- Profit of CAT = $\frac{1}{5} \times 10,00,000 = Rs. 2,00,000$
- So, CAT's sales = Rs. 12,00,000
- Since BAT has same sales as CAT, BAT sales = Rs. 12,00,000 // - Profit of BAT = 20% of sales = Rs. 2,40,000
- Expenses = Rs. 12,00,000 - Rs. 2,40,000 = Rs. 9,60,000
- Profit of DAT = Rs. 2,00,000 (same as CAT)
- DAT sales = 3 × profit = Rs. 6,00,000
- ANT's profit = 10% of sales
- Let ANT sales = x → Profit = 0.1x → Expenses = 0.9x But ANT expenses = 10% less than CAT = Rs. 9,00,000 → 0.9x = 9,00,000 ⇒ x = Rs. 10,00,000 So Sales: ANT = 10,00,000, BAT = 12,00,000, CAT = 12,00,000, DAT = 6,00,000 Lowest sales = DAT
Which company had the highest total expenses?
Show Hint
- ANT
- BAT
- CAT
- DAT
The Correct Option is C
Solution and Explanation
ANT’s expenses = 10% less than CAT = Rs. 9,00,000
BAT: Sales = Rs. 12,00,000, Profit = 20% of sales = Rs. 2,40,000
Expenses = Rs. 12,00,000 - Rs. 2,40,000 = Rs. 9,60,000
DAT: Profit = Rs. 2,00,000, Sales = 3 × Profit = Rs. 6,00,000
Expenses = Rs. 6,00,000 - Rs. 2,00,000 = Rs. 4,00,000
Among these, CAT has the highest expenses: Rs. 10,00,000
Which company had the lowest profits?
Show Hint
- ANT
- BAT
- CAT
- DAT
The Correct Option is A
Solution and Explanation
BAT: Profit = Rs. 2,40,000
CAT = DAT = Rs. 2,00,000 (from previous questions)
Lowest profit is by ANT: Rs. 1,00,000
Which company had the highest profits?
Show Hint
- ANT
- BAT
- CAT
- DAT
The Correct Option is B
Solution and Explanation
BAT: Profit = Rs. 2,40,000
CAT = DAT = Rs. 2,00,000
BAT had the highest profit
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