gaurav200x

Gaurav Mittal
[FONT=&quot]Q. are based on the following graph



[/FONT]
1.Which year of showed the greatest percentage increase in profit as compared to the previous year ?
1. 1993
2. 1994
3. 1990
4. 1992

2.The average revenue collected in the given seven years is approximately:
1. Rs. 164 lakh
2. Rs. 168 lakh
3. Rs. 171 lakh
4. Rs. 175 lakh

3.In which year was the growth in expenditure greatest as compared to the previous year?
1. 1993
2. 1995
3. 1991
4. 1992

4.The expenditure for the seven years together form what percent of the revenues during the same period ?
1. 75%
2. 67%
3. 62%
4. 83%

5. If the profit in 1996 shows the same annual rate of growth as it had shown in 1995 over the previous year, then what approximately will be the profit in 1996 ?
1. Rs. 72 lakh
2. Rs. 86 lakh
3. Rs. 93 lakh
4. Rs. 78 lakh
 
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gaurav200x

Gaurav Mittal
C'mon guys, we need more enthusiasm here. Now u can earn points while u learn. Check my signature for details.

So lets get cracking !!
 

kartik

Kartik Raichura
Staff member
1.) 3

2.) 1

3.) 4

4.) 83

All answers are just assumptions made by looking at the graph and without actual calculation.
 

neeraj_uchila

New member
5) 93 lakhs is the ans i guess....the profit figure in 94 is around 60 lakhs and the profit figure in 95 is around 75 lakhs..so the growth is 25%...and calculating the 25% of &%lakhs we get 18.75lakhs...so the new profit amount should be around 93 lakhs
 

gaurav200x

Gaurav Mittal
The correct answers with explanation is given below.

Note down the corresponding values of Profit, Revenue & Expenditure on the bar graph itself, keeping in mind, Profit = Revenue - Expenditure. The values read from the graph should satisfy this condition for each year. Here corresponding values are given in the form of a table to make the solution easier to understand:


YEAR 1989 1990 1991 1992 1993 1994 1995
Profit 20 25 30 40 50 60 72
Reven. 122 130 145 170 185 200 222
Expend. 102 105 115 130 135 140 150


1. (4) Percentage Increase = [Final value - Initial value] 100/Initial value. Using this formula & conversion of fractions into percentage, calculate the percentage increase for the various years. Maximum percentage increase is for the year 1992 = (40 - 30)/30 = 1/3 = 33.33%.

2. (2) Average Revenue = (Total Revenue)/(Number of years)
= (122 + 130 + 145 + 170 + 185 + 200 + 222)/7
= 1174/7
= 167.7 = 168(approx.)

3. (4) From the table, it can be seen that growth in expenditure as compared to the previous year was maximum in 1992.

4. (1) Total Revenue = 1174
Total Expenditure = 700 + (2 + 5 + 15 + 30 + 35 + 40 + 50) = 887
%formed by the revenue = 887/1174 ~ 900/1200 = ¾ = 75%
[Actual values will give 75.55% & again (1) will be the correct answer but you can save time using approximations]

5. (2) % profit in 95 = (72 - 60) /60 = 1/5 = 20%
As per the given condition % profit in 96 = 20%
[FONT=&quot]Then total profit will be (6 ´[FONT=&quot] 72)/5 [/FONT]~[FONT=&quot] 86 lakhs

@neeraj... ur answer was incorrect, but i award u 2 points for participating. Better luck next time. The questions were also not so easy.

[/FONT][/FONT]
 

gaurav200x

Gaurav Mittal
Ok, here are the next set of questions:



1. What is the maximum production capacity (in ‘000 tonnes) of Lipton for coffee?

1. 2.53
2. 2.85
3. 2.24
4. 2.07

2. The highest price of coffee per kg is for
1. Nestle
2. MAC
3. Lipton
4. Insufficient data

3. What percent of the total market share (by Sales Value) is controlled by “Others”?
1. 60%
2. 32%
3. 67%
4. Insufficient data.

4. What approximately is the total production capacity (in tonnes) for coffee in India?
1. 18, 100
2. 20, 300
3. 18,900
4. Insufficient data.

5. Which company out of the four companies mentioned above has the maximum unutilised capacity (in ‘000 tonnes)?
1. Lipton
2. Nestle
3. Brooke Bond
4. MAC
 

neeraj_uchila

New member
1)2.53
approx 65% corresponds to 1.64 then 100 corresponds to 2.53 i.e
100*1.64/65=2.53
2)Nestle since 2.03 tonnes cost 26.75 crores so 1 tonne cost around 13.35 crores
3)32%
The total market share controlled by others is
132.80-(31.15+26.75+15.25+17.45)= 42 approx so 42/132= 32%
4)18900
since 61.30% percent of the production capacity corresponds to 11,600 therefore 100 corresponds to 18900 although nowhere in the question it is mentioned data is for india so we can also opt for insufficent data
i did not solve 5 too much calculation
 

kartik

Kartik Raichura
Staff member
2 ) Nestle .. .50 difference in production and way huge selling price

3.) 32 .... add everythin up of SV .. comes to approx 70%
 

gaurav200x

Gaurav Mittal
Well here are the answers guys...... even i'm surprised at how they solved the 2nd question.

1. (1) For Lipton production = 1.64 (“000 tonnes)
Capacity Utilisation = 64.8% ~ 65%
65% = 13/20, so maximum production capacity = (20 ´ 1.64)/13 = 32.8/13 ~ 2.53 (‘000 tonnes)

2. (4) Data insufficient, because different varieties of coffee of the same brand may have different prices. We can not assume that there will be only one variety of coffee of each brand.

3. (2) Total Sales Value (incl. Others) = 132.8(Rs. Cr.)
Sales value (BB + Nestle + Lipton + MAX) = [31.15 + 26.75 + 15.25 + 17.45]
= 90.60 (Rs. Cr.)
Total sales value of others = 132.8 - 90.60 = 42.2 (Rs. Cr)
Others /Total = 42.2/132.8 ~ 1/3 (approx.)
% share of others = 33.33% (approx.)
Hence, the closest option will be the correct answer i.e. 32%.

4. (3) Total prod capacity = [100 ´ Total prod. (‘000 tonnes) ] /(% Capacity utilisation)
= (100 ´ 11.63)/61.3
= 1160/50 (approx.)
= 19.3 (‘000 tonnes)
Here we are taking approximate value of the denominator to be less than the actual value Hence, the closest option will be the correct answer i.e. 18,900.

5. (4) Unutilised capacity of a company is given by.
(100 - % capacity utilisation) (Production in ‘000 tonnes)/(% capacity utilisation)
Substituting the corresponding values from the table, we get that maximum unutilised cap. is for MAC i.e. (100 - 59.35) ´ (1.54)/59.35 ~ 1.05 (‘000 tonnes)


Well tried neeraj and keshwendu.... 4 and 2 points to u respectively.
 

gaurav200x

Gaurav Mittal
Hey guys, i've a doubt.... For the final solution, why do u need to divide by the %age capacity utilisation??
 

shrijit_s

Par 100 posts (V.I.P)
gaurav200x said:
Hey guys, i've a doubt.... For the final solution, why do u need to divide by the %age capacity utilisation??


I shall explain you the way I have gone about this.

Lets take the eg of MAC. 1.54 is their current production and 59.35% is their capacity, ie 1.54 tonnes corresponds to 59.35%. So then we can find out 100% by cross multiplying (1.54/59.35)*100 = 2.59 (This is their total capacity available)

MAC's unutilised capacity 100 - 59.35= 40.65%

So unutilised capacity in tonnes 40.65% * 2.59 which is approx 1.05

Cheers!!!
 

gaurav200x

Gaurav Mittal
shrijit_s said:
I shall explain you the way I have gone about this.

Lets take the eg of MAC. 1.54 is their current production and 59.35% is their capacity, ie 1.54 tonnes corresponds to 59.35%. So then we can find out 100% by cross multiplying (1.54/59.35)*100 = 2.59 (This is their total capacity available)

MAC's unutilised capacity 100 - 59.35= 40.65%

So unutilised capacity in tonnes 40.65% * 2.59 which is approx 1.05

Cheers!!!
Oohk... the same thing was done in one step here..... !!

Ok, here are the next set of questions.




1) Which bank showed a loss whose deviation from the average was maximum?

a) Indian Bank
b) Vijaya Bank
c) Central Bank
d) United Bank


2) Which of the following is true?
I. The loss incurred by Indian Bank is equal to the loss incurred by all the other banks given
II. If the Reserve Bank of India ploughs in approx. Rs. 2300 crore, the losses suffered by the given banks can be offset.
III. Indian Bank will almost surely lose its popularity soon.

a) I & II
b) II only
c) II & III
d) I, II & III

3) Finding no other alternative of increasing the income, Vijaya Bank decided to generate income by raising the lending rates. If the total amount loaned out by it was Rs. 8250 crore, by how many percent points would it have to increase the lending rates so as to offset its losses?

a) Around 5
b) Around 2.5
c) Around 1
d) Can't determine


4) The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. Which of the following banks shows the maximum loss per crore rupees of assets?

a) Indian
b) Vijay
c) UCO
d) United


5) The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. What change would have to be made in the assets of the Indian Bank if its loss per crore of asset was to be made equal to that in case of Central Bank?

a) They will have to be increased by 62%

b) They will have to be reduced by 15%

c) They will have to be increased by 215%

d) They will have to be reduced by 25%
 

gaurav200x

Gaurav Mittal
shrijit_s said:
1) A
2) B
3) D
4) A

Cheers!!!!.......................................


Question 1

Which bank showed a loss whose deviation from the average was maximum?
(1) Indian Bank (2) Vijaya Bank (3) Central Bank (4) United Bank

The right answer is Indian Bank.

Solutions 1 – 5
:

For 1995-96, the net losses incurred by the banks are around :
Indian Bank – 1350; Vijaya – 250; UCO – 250; United – 250; Punjab and Sind – 150; Central – 100.

The average net loss was (2350/6) = 325. Indian Bank shows a maximum deviation from this average. ‘Can be observed directly. Notice that excepting IB, all are in similar losses. This implies the average to be nearer them than IB viz., IB deviation maximum.
============================================================================

Question 2

Which of the following is true?
I. The loss incurred by Indian Bank is equal to the loss incurred by all the other banks given
II. If the Reserve Bank of India ploughs in approx. Rs. 2300 crore, the losses suffered by the given banks can be offset.
III. Indian Bank will almost surely lose its popularity soon.
(1) I & II (2) II only (3) II & III (4) I, II & III

The right answer is II only.

Since the total net loss is 2350, the Reserve Bank of India would have to plough in around 2300 to offset this loss. The validity of the other statements cannot be determined on the basis of the information provided. In fact since all options accept second statement as true, this need not be computed.
============================================================================

Question 3

Finding no other alternative of increasing the income, Vijaya Bank decided to generate income by raising the lending rates. If the total amount loaned out by it was Rs. 8250 crore, by how many percent points would it have to increase the lending rates so as to offset its losses?
(1) Around 5 (2) Around 2.5 (3) Around 1 (4) Can't determine

The right answer is Can't determine.

Loss of 250 is 3% of 8250. So, if lending rate is increased by 3%, losses can be offset.
Note that the value 250 is an approximation, so the answer cannot be exact.
============================================================================

Question 4

The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. Which of the following banks shows the maximum loss per crore rupees of assets?
(1) Indian (2) Vijay (3) UCO (4) United

The right answer is United.

The assets of the all the other banks are less than 25% of Indian Bank’s assets. It we assume that the assets of all the other banks are 25%, it is easier to compare figures without actually calculating :

Indian Bank Vijaya UCO United Punjab & Sind Central
Loss 1350 250 250 250 150 100

Assets
75,000 17,250 1,4250 12,750 9,750 9,000


Thus, it can be seen that the maximum loss per crore rupees of assets is incurred by Indian Bank.
=========================================================================Question

5

The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. What change would have to be made in the assets of the Indian Bank if its loss per crore of asset was to be made equal to that in case of Central Bank?
(1) They will have to be increased by 62% (2)
They will have to be reduced by 15% (3) They will have to be increased by 215% (4) They will have to be reduced by 25%

The right answer is They will have to be increased by 62%.
To make the loss per crores of rupees equal to Central Bank, Indian Bank has to increase its assets.

Therefore, 1350/x = 100/9000. Thus, x = 1,21,500
This is an increase of (1,21,500 – 75,000), i.e., 46,500, i.e., 62%
Note the even if we approximate as 1350/x = 75/9000, x = 1,62,000, i.e., increase of 116%.
So, closest option is chosen.
 
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gaurav200x

Gaurav Mittal
@shrijit,

can u give some explanation to ur solutions.... esp the 4th and the 5th. I also want to know what is meant by the 3rd choice of the 2nd question. It is not clear.
 

gaurav200x

Gaurav Mittal
shrijit_s said:
Sirji..for Q104 first you have mentioned United Bank and later Indian bank as the answer..
yeah, i am also confused, bcoz the answer booklet shows both. I think it is Indian Bank only. Can u justify ur solution. From that we can find out the correct answer.
 
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