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 . 134

If at the most 40 units can be manufactured then what is the number of units that can be manufactured to maximize profit?

A : 40B : 34C : 35D : 25
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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.

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