CAT 2003 | Question: 1-76

Question

Answer the questions on the basis of the information below:

An industry comprises four firms (A, B, C and D). Financial details of these firms and of the industry as a whole for a particular year are given below. Profitability of a firm is defined as profit as a percentage of sales.

Figures are in Rs.	A	B	C	D	Total
Sales	24, 568	24,468	23,752	15,782	89,570
Operating costs	17,198	19,101	16,151	10,258	62,708
Interest costs	2457	2292	2850	1578	9177
Profit	4914	4075	4750	3946	17,684

Which firm has the highest profitability?

• A. A
• B. B
• C. C
• D. D

Answer 1

First answer $\text{(D)}$

Solution : 1) Profit A /Sales A $2$) Profit B /Sales B $2$) Profit C /Sales C $2$) Profit D /Sales D  Which is hightest that one is the correct answer. ($A \approx \frac {1}{5}, B \approx \frac{1}{6}, C \approx \frac{1}{5}, D \approx \frac{1}{4}$).

Second answer $(1)$   [Sales A +  Sales B] / (Total Sales) is $55\%$