Question Numbers (6 to 10): The two plots below show data for four companies code-named A, B, C, and D over three years – 2019, 2020, and 2021.
The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs.100 crores in revenue and spent Rs.30 crores. The profit of a company is defined as its revenue minus its costs.
Question
The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had 250 employees at the start of 2021, and 30 new employees joined the company during the year.
Considering all three years, which company had the highest annual profit?
1) Company A
2) Company B
3) Company C
4) Company D
Explanation
Correct answer- 3
Let us calculate the profit for all the three years for the four companies:
A = 90 + 90 + 60 – 85 – 65 – 60 = 30
B = 100 + 90 + 30 – 75 – 40 – 30 = 75
C = 25 + 70 + 100 – 20 – 60 – 30 = 85
D = 50 + 20 + 70 – 40 – 50 – 70 = –20
So the highest profit was for Company C.
Question
Which of the four companies experienced the highest annual loss in any of the years?
1) Company A
2) Company C
3) Company B
4) Company D
Explanation
Correct answer-4
A company will be at a loss only if Cost is higher than revenue.
We can see from the table that this happens only in the case of Company D in 2020.
Question
The ratio of a company’s annual profit to its annual costs is a measure of its performance. Which of the four companies had the lowest value of this ratio in 2019?
1) Company D
2) Company C
3) Company B
4) Company A
Explanation
Correct answer – 4
The ratio of each company’s annual profit to its annual costs in 2019:
A = 5/85 = 1/17; B = 25/75 = 1/3; C = 5/20 = 1/4; D = 10/40 = 1/4
Hence, the lowest value of this ratio is for Company A.
Question
The total number of employees lost in 2019 and 2020 was the least for:
1) Company D
2) Company A
3) Company C
4) Company B
Explanation
Correct answer- 4
Question
Profit per employee is the ratio of a company’s profit to its employee strength. For this purpose, the employee strength in a year is the average of the employee strength at the beginning of that year and the beginning of the next year. In 2020, which of the four companies had the highest profit per employee?
1) Company D
2) Company B
3) Company A
4) Company C
Explanation
Correct answer – 2
