Question

This group of companies operates in multiple sectors. The holding company has decided to closely monitor minimum number of sectors (not exceeding 5) contributing together a major part (at least 80%) of sales of the group. Identify the correct set of sectors

• A. Engineering, Services, CIS & Consumer Goods
• B. Engineering, Services, CIS, Energy & Consumer Goods.
• C. Engineering, Material, Services and CIS
• D. Engineering, Mateiral, CIS and Energy
• A. 5.87%
• B. 7.6%
• C. 4.94%
• D. 8.9%

Answer 1

The Correct Option is C

Step 1: Understand the problem
We are asked to find the minimum number of sectors (not more than 5) that together contribute at least 80% of the total sales of the group of companies. This requires ranking the sectors by their sales share and adding them until the cumulative percentage reaches or exceeds 80%.

Step 2: List the sectors with their % shares
- Engineering = 31%
- Materials = 21%
- CIS (Communication & Information Systems) = 19%
- Services = 10%
- Energy = 8%
- Consumer Goods = 6%
- Chemicals = 5%
- Total = 100%

Step 3: Rank them from largest to smallest
1. Engineering = 31%
2. Materials = 21%
3. CIS = 19%
4. Services = 10%
5. Energy = 8%
6. Consumer Goods = 6%
7. Chemicals = 5%

Step 4: Add percentages until at least 80% is reached
- Engineering + Materials = 31% + 21% = 52%
- Add CIS = 52% + 19% = 71%
- Add Services = 71% + 10% = 81% ✅ (reaches the target)

Step 5: Verify condition
We used only 4 sectors (within the limit of 5), and their combined share = 81% ≥ 80%. Thus, the correct set of sectors is Engineering, Materials, CIS, and Services.

Final Answer: The correct option is (C) Engineering, Materials, Services and CIS.

Answer 2

Step 1: Understand the problem
We are given:
- Average profit margin across all sectors = 10% of sales.
- Profit margin of Engineering = 12%.
- Profit margin of CIS = 20%.
We need to calculate the average profit margin across the remaining sectors (i.e., all except Engineering and CIS).

Step 2: Note the sales values
From the table:
- Total sales = 782,750 million.
- Engineering sales = 244,830 million.
- CIS sales = 148,160 million.
- Remaining sectors' sales = 782,750 – (244,830 + 148,160) = 782,750 – 392,990 = 389,760 million.

Step 3: Calculate total profit for all sectors
Total profit = 10% of 782,750 = 78,275 million.

Step 4: Calculate profit for Engineering and CIS
- Engineering profit = 12% of 244,830 = 0.12 × 244,830 = 29,379.6 million.
- CIS profit = 20% of 148,160 = 0.20 × 148,160 = 29,632 million.
- Combined profit of Engineering + CIS = 29,379.6 + 29,632 = 59,011.6 million.

Step 5: Profit from remaining sectors
Profit of remaining sectors = Total profit – (Engineering + CIS profit)
= 78,275 – 59,011.6 = 19,263.4 million.

Step 6: Average profit margin for remaining sectors
= (Profit of remaining sectors ÷ Sales of remaining sectors) × 100
= (19,263.4 ÷ 389,760) × 100
≈ 4.94%.

Final Answer: The correct option is (C) 4.94%.