CAT 2019 LRDI Questions with Answers 16

A large store has only three departments, Clothing, Produce, and Electronics. The following figure shows the percentages of revenue and cost from the three departments for the years 2016, 2017 and 2018. The dotted lines depict percentage levels. So for example, in 2016, 50% of store's revenue came from its Electronics department while 40% of its costs were incurred in the Produce department.

In this setup, Profit is computed as (Revenue – Cost) and Percentage Profit as Profit/Cost × 100%.

It is known that

  1. The percentage profit for the store in 2016 was 100%.
  2. The store’s revenue doubled from 2016 to 2017, and its cost doubled from 2016 to 2018.
  3. There was no profit from the Electronics department in 2017.
  4. In 2018, the revenue from the Clothing department was the same as the cost incurred in the Produce department.

Question 1:
What was the percentage profit of the store in 2018?

Show Answer
ANSWER: 25

Question 2:
What was the ratio of revenue generated from the Produce department in 2017 to that in 2018?

  1. 16: 9
  2. 9: 16
  3. 8: 5
  4. 4: 3
Show Answer
OPTION: 3

Question 3:
What percentage of the total profits for the store in 2016 was from the Electronics department?

Show Answer
ANSWER: 70

Question 4:
What was the approximate difference in profit percentages of the store in 2017 and 2018?

  1. 33.3
  2. 15.5
  3. 8.3
  4. 25.0
Show Answer
OPTION: 3

The percentage share in Revenue and cost in the different years are as follows.

Assume the cost of the store in 2016 to be 100.

As the profit percentage that year was 100, the revenue of the store in that year would be 200 .

\(\therefore\) Revenue in 2017 would be 400 and cost of the store in 2018 would be 200 . Given that in \(2017,30 \%\) of \(400=40 \%\) of cost.

\(\therefore 120=40 \%\) of cost or cost in 2017=300

In \(2018,50 \%\) of \(200=40 \%\) of Revenue

\(\therefore\) Revenue in \(2018=\frac{100}{0.4}=250\)

\(\therefore\) We have the following values for Revenue and cost for the different years.

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CAT 2019 LRDI sets

CAT 2019 LRDI set 1
CAT 2019 LRDI set 2
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CAT 2019 LRDI set 16 [Current page]