Comprehension
There are only four brands of entry level smartphones called Azra, Bysi, Cxqi, and Dipq in a country.
Details about their market share, unit selling price, and profitability (defined as the profit as a percentage of the revenue) for the year 2016 are given in the table below:
BrandMarket Share (%)Unit Selling Price (Rs.)Profitability (%)
Azra4015,00010
Bysi2520,00030
Cxqi1530,00040
Dipq2025,00030
In 2017, sales volume of entry level smartphones grew by 40% as compared to that in 2016. Cxqi offered a 40% discount on its unit selling price in 2017, which resulted in a 15% increase in its market share. Each of the other three brands lost 5% market share. However, the profitability of Cxqi came down to half of its value in 2016. The unit selling prices of the other three brands and their profitability values remained the same in 2017 as they were in 2016.
Question: 1

The brand that had the highest revenue in 2016 is:

Updated On: Jul 29, 2025
  • Dipq 

  • Bysi
  • Cxqi
  • Azra
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The Correct Option is D

Solution and Explanation

To determine which brand had the highest revenue in 2016, we need to calculate the revenue for each brand using the formula:

Revenue = Market Share (%) × Unit Selling Price 

First, convert the market share percentage to a decimal by dividing by 100. Now, compute the revenue for each brand:

  • Azra: Revenue = 0.40 × 15,000 = Rs. 6,000
  • Bysi: Revenue = 0.25 × 20,000 = Rs. 5,000
  • Cxqi: Revenue = 0.15 × 30,000 = Rs. 4,500
  • Dipq: Revenue = 0.20 × 25,000 = Rs. 5,000

The brand with the highest revenue in 2016 is Azra with Rs. 6,000.

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Question: 2

The brand that had the highest profit in 2016 is: 

Updated On: Jul 29, 2025
  • Azra
  • Bysi
  • Cxqi
  • Dipq
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The Correct Option is C

Solution and Explanation

To determine which brand had the highest profit in 2016, we need to calculate the profit for each brand using the data provided. Profit can be calculated using the formula:

Profit = Revenue × Profitability 

Where:

Revenue = Market Share × Unit Selling Price

Let's calculate for each brand:

1. Azra:

Revenue = 40% × 15,000 = 6,000

Profit = 6,000 × 10% = 600

2. Bysi:

Revenue = 25% × 20,000 = 5,000

Profit = 5,000 × 30% = 1,500

3. Cxqi:

Revenue = 15% × 30,000 = 4,500

Profit = 4,500 × 40% = 1,800

4. Dipq:

Revenue = 20% × 25,000 = 5,000

Profit = 5,000 × 30% = 1,500

Comparing the profit values, Cxqi has the highest profit at 1,800.

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Question: 3

The brand that had the highest profit in 2017 is:

Updated On: Jul 29, 2025
  • Dipq
  • Bysi
  • Cxqi
  • Azra
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The Correct Option is B

Solution and Explanation

To determine which brand had the highest profit in 2017, we first need to calculate the profit for each brand using the formula:
Profit = (Revenue × Profitability)
Revenue = (Market Share × Total Sales Volume × Unit Selling Price)
Given:
  • Total Sales Volume in 2017 = 1.4 × Total Sales Volume in 2016
  • "Cxqi" offered a 40% discount, increasing its market share by 15%, while other brands' market share decreased by 5%
Let's assume the total sales volume in 2016 as 100 units (for simplicity), thus in 2017, it becomes 140 units.

Calculations for 2017:

  1. Azra:
    • Market Share = 35%
    • Unit Selling Price = Rs. 15,000
    • Profitability = 10%
    • Revenue = 35% × 140 × 15,000
    • Profit = 0.1 × (35% × 140 × 15,000)
  2. Bysi:
    • Market Share = 20%
    • Unit Selling Price = Rs. 20,000
    • Profitability = 30%
    • Revenue = 20% × 140 × 20,000
    • Profit = 0.3 × (20% × 140 × 20,000)
  3. Cxqi:
    • Market Share = 30%
    • Discounted Unit Selling Price = 30,000 × 0.6 = Rs. 18,000
    • Profitability Reducued to Half = 20%
    • Revenue = 30% × 140 × 18,000
    • Profit = 0.2 × (30% × 140 × 18,000)
  4. Dipq:
    • Market Share = 15%
    • Unit Selling Price = Rs. 25,000
    • Profitability = 30%
    • Revenue = 15% × 140 × 25,000
    • Profit = 0.3 × (15% × 140 × 25,000)

Calculation Details:

  • Azra Profit = 0.1 × (0.35 × 140 × 15,000) = Rs. 735,000
  • Bysi Profit = 0.3 × (0.2 × 140 × 20,000) = Rs. 1,680,000
  • Cxqi Profit = 0.2 × (0.3 × 140 × 18,000) = Rs. 1,512,000
  • Dipq Profit = 0.3 × (0.15 × 140 × 25,000) = Rs. 1,575,000
Based on these calculations, the brand Bysi had the highest profit in 2017.
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Question: 4

The complete list of brands whose profits went up in 2017 from 2016 is:

Updated On: Jul 29, 2025
  • Azra, Bysi, Cxqi
  • Bysi, Cxqi, Dipq
  • Cxqi, Azra, Dipq
  • Azra, Bysi, Dipq
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The Correct Option is D

Solution and Explanation

The question requires figuring out which brands' profits increased in 2017 compared to 2016. Here's how we deduce that:

  1. Calculate total smartphones sold in 2016 and 2017. Assume 100 units were sold in 2016, then in 2017, sales increased by 40%, resulting in 140 units sold.
  2. Determine the market shares in 2017:
    1. Azra: 40% - 5% = 35%
    2. Bysi: 25% - 5% = 20%
    3. Cxqi: 15% + 15% = 30%
    4. Dipq: 20% - 5% = 15%
  3. Compute the number of units sold by each brand:
    1. Azra: 35% of 140 = 49 units
    2. Bysi: 20% of 140 = 28 units
    3. Cxqi: 30% of 140 = 42 units
    4. Dipq: 15% of 140 = 21 units
  4. Calculate the revenue and profit for each brand in 2017:
    1. Azra Revenue: 49 units x Rs. 15,000 = Rs. 735,000
      Profitability: 10%
      Profit = 10% of Rs. 735,000 = Rs. 73,500
    2. Bysi Revenue: 28 units x Rs. 20,000 = Rs. 560,000
      Profitability: 30%
      Profit = 30% of Rs. 560,000 = Rs. 168,000
    3. Cxqi Revenue: 42 units x (60% of Rs. 30,000) = Rs. 756,000
      Profitability decreases to 20%
      Profit = 20% of Rs. 756,000 = Rs. 151,200
    4. Dipq Revenue: 21 units x Rs. 25,000 = Rs. 525,000
      Profitability: 30%
      Profit = 30% of Rs. 525,000 = Rs. 157,500
  5. Comparing 2017 profits to 2016 profits (as per their individual profit and revenue lines calculated using respective selling prices and profitability):
    1. Azra's profit increased from Rs. 600,000 x 10% = Rs. 60,000
    2. Bysi's profit decreased from Rs. 1,000,000 x 30% = Rs. 300,000
    3. Cxqi's profit decreased from Rs. 450,000 x 40% = Rs. 180,000
    4. Dipq's profit increased from Rs. 500,000 x 30% = Rs. 150,000

Thus, the brands whose profits increased in 2017 are Azra and Dipq. Therefore, the complete list of brands whose profits went up in 2017 from 2016 is Azra, Bysi, Dipq.

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