Comprehension

Directions for Questions: These questions are based on the table and information given below.

The following is the wholesale price index (WPI) of a select list of items with the base year of 1993-94. In other words, all the item prices are made 100 in that year (1993-94). Prices in all other years for an item are measured with respect to its price in the base year. For instance, the price of cement went up by 1% in 1994-95 as compared to 1993-94. Similarly, the price of power went up by 3% in 1996-97 as compared to 1993-94.

CAT/2003

Question . 185

Steel manufacturing requires the use of iron ore, power and manpower. The cost of iron ore has followed the All Items index. During 1993-94 power accounted for 30% of the selling price of steel, iron ore for 25%, and wages for 10% of the selling price of steel. Assuming the cost and price data for cement as given in the previous question, the operating profit (% of selling price) of an average steel manufacturer in 2002-03