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:
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.
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:
| Brand | Market Share (%) | Unit Selling Price (Rs.) | Profitability (%) |
| Azra | 40 | 15,000 | 10 |
| Bysi | 25 | 20,000 | 30 |
| Cxqi | 15 | 30,000 | 40 |
| Dipq | 20 | 25,000 | 30 |
Question: 1
The brand that had the highest revenue in 2016 is:
The brand that had the highest revenue in 2016 is:
Updated On: Sep 30, 2024
- Dipq
- Bysi
- Cxqi
- Azra
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The Correct Option is D
Solution and Explanation
The correct answer is (D):
Let the total market size be 100 units. The sales of Azra, Bysi, Cxqi and dipq would be 40, 25, 15 and 20 units respectively.
The revenue would be as follows
Azra = 40 x 15,000 = 6.0 lac
Bysi = 25 x 20,000 = 5.0 lac
Cxgi = 15 x 30,000 = 4.5 lac
Dipq = 20 x 25,000 = 5.0 lac
The brand with the highest revenue is Azra.
Ans : Azra
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Question: 2
The brand that had the highest profit in 2016 is:
The brand that had the highest profit in 2016 is:
Updated On: Sep 30, 2024
- Azra
- Bysi
- Cxqi
- Dipq
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The Correct Option is C
Solution and Explanation
The correct answer is (C):
The profits for the different brands, assuming revenue as in the previous question would be
Azra -6.0 lac ×10/100 = 60,000
Bysi -5.0 lac ×30/100 = 1,50,000
Cxgi -4.5 lac ×40/100 = 1,80,000
Dipq -5.0 lac ×30/100 = 1,50,000
The profit is the highest for Cxqi
Ans : Cxqi
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Question: 3
The brand that had the highest profit in 2017 is:
The brand that had the highest profit in 2017 is:
Updated On: Sep 30, 2024
- Dipq
- Bysi
- Cxqi
- Azra
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The Correct Option is B
Solution and Explanation
The correct answer is (B):
The new market share, selling prices and profitability for the different brands are
| Brand | Market share | Selling price | Profitability |
| Azra | 35 | 15,000 | 10 |
| Bysi | 20 | 20,000 | 30 |
| Cxqi | 30 | 18,000 | 20 |
| Dipq | 15 | 25,000 | 30 |
Now the total sales is 140 units.(Increase of 40%) The profits are as follows
Azra - 49×15,000×10/100 = 73,500
Bysi - 28×20,000×30/100 = 1,68,000
Cxgi - 42×18,000×20/100 = 1,51,200
Dipq - 21×25,000×30/100 = 1,57,500
The profit is the highest for Bysi
Ans : Bysi
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Question: 4
The complete list of brands whose profits went up in 2017 from 2016 is:
The complete list of brands whose profits went up in 2017 from 2016 is:
Updated On: Sep 30, 2024
- 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 correct answer is (D):
The profits increased for Azra (60,000 – 73,500) for
Bysi (1,50,000 – 1, 68,000) and Dipq (1,50,000 – 1,57,500)
Ans : Azra, Bysi, Dipq
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