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.
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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.
(d) For 20 units,
Profit = 400 – 280 – 70 = 50
Below 20 units the profit will be less than 50.
So a minimum of 20 units is to be manufactured