CAT DILR Questions | CAT Line Chart & Bar Chart questions

Comprehension

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CAT/1997

Question . 154

If the interest component is not included in the total cost calculation, which year would show the maximum profit per unit cost?

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Explanatory Answer

Method of solving this CAT DILR Question from Line Chart & Bar Chart question

(b) If interest is not part of the total cost, the total costs for the year 1991, 1992, 1993 and 1995 are 115, 123, 140 and 166 respectively. The profits per unit cost in these years are 0.1304, 0.2032, 0.1428, 0,0903. Hence the maximum profit per unit cost is in 1992.