CAT DILR Questions | CAT Line Chart & Bar Chart questions
Comprehension
Directions for Questions: These questions are based on the information and graph given below
Ghosh Babu has a manufacturing unit. The following graph gives the cost for various number of units. Given the Profit = Revenue - Variable Cost - Fixed Cost. The fixed cost remains constant upto 34 units after which additional investment is to be done in fixed assets. In any case production can not exceed 50 units. 
CAT/1998
Question . 132
What is the minimum number of units that need to be produced to make sure that there was no loss?
Explanatory Answer
Method of solving this CAT DILR Question from Line Chart & Bar Chart question
Profit = Revenue – variable cost – fixed cost
Fixed cost remains constant upto 34 units after which additional investment is to be done in fixed assets. Maximum production = 50 units.
(b) For no loss
Revenue = variable cost + Fixed cost and we can see from the graph that when production is equal to 10 units. Revenue = variable cost + Fixed cost and before this point there are losses and after this point, there are profits. Hence minimum number of units that must be produced to make sure that there are no losses is 10. At 10 units, Profit = 200 – 130 – 70 = 0.