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 . 136
If the fixed cost of production goes up by Rs 40 then what is the minimum number of units that need to be manufactured to make sure that there is 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) As per the question, Fixed Cost = 70 + 40 = 110 till 34 units.
We know previously that there is no profit/loss at 10 units.
