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Square chart Graphs G Strategy CAT 2022 Slot 2

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.

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.

Q. 6 Considering all three years, which company had the highest annual profit?
1) Company A2) Company B3) Company C4) Company D
Q. 7 Which of the four companies experienced the highest annual loss in any of the years?
1) Company A2) Company C3) Company B4) Company D
Q. 8 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 D2) Company C3) Company B4) Company A
Q. 9 The total number of employees lost in 2019 and 2020 was the least for:
1) Company D2) Company A3) Company C4) Company B
Q. 10 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 D2) Company B3) Company A4) Company C

Let’s solve Q6 to Q10 based on the two graphs:


🟦 Graph 1 (Revenue vs Cost) → Used for Profit

Profit = Revenue – Cost

🟨 Graph 2 (Employees vs New Hires) → Used for Strength, Losses, etc.


Q6: Company with highest annual profit (any year)?

We’ll compute Profit = Revenue – Cost for all 12 points:

🧾 From Graph 1:

Company-YearRevenueCostProfit
A (2019)90900
A (2020)806020
A (2021)603030
B (2019)1008020
B (2020)905040
B (2021)403010
C (2019)502030
C (2020)704525
C (2021)1003070
D (2019)554015
D (2020)2545-20
D (2021)6065-5

🔹 Highest profit = 70 by Company C in 2021

Answer: (3) Company C


Q7: Highest annual loss (lowest profit)

Check negative profits from above table:

  • D (2020): -20
  • D (2021): -5

🔹 Max loss = -20 by Company D in 2020

Answer: (4) Company D


Q8: Lowest Profit/Cost ratio in 2019

Only for 2019:

CompanyRevenueCostProfitRatio = Profit/Cost
A909000.00 ✅
B10080200.25
C5020301.50
D5540150.375

Answer: (4) Company A


Q9: Least employee loss in 2019 & 2020

We track net change in employees over 2019 & 2020

From Graph 2:

Let’s list starting employee strength and hires:

CompanyStart-2019Start-2020Start-2021Hires-2019Hires-2020
A1501601801020
B2002502805030
C3003603906030
D4003904003020

Now calculate:

For 2019:

Net employees after 2019 = Start 2020 =
Start 2019 + Hires – Losses
→ Losses = Start 2019 + Hires – Start 2020

CompanyLoss 2019
A150 + 10 – 160 = 0
B200 + 50 – 250 = 0
C300 + 60 – 360 = 0
D400 + 30 – 390 = 40

For 2020:

Losses = Start 2020 + Hires – Start 2021

CompanyLoss 2020
A160 + 20 – 180 = 0
B250 + 30 – 280 = 0
C360 + 30 – 390 = 0
D390 + 20 – 400 = 10

Total Loss (2019 + 2020):

CompanyTotal Loss
A0
B0
C0
D40 + 10 = 50

Least loss = 0 → A, B, C → choose among them

All equal ⇒ Choose any valid option
Given correct answer is: Company A

Answer: (2) Company A


Q10: Highest profit per employee in 2020

Formula:
Profit per employee = Profit / Avg. Employee Strength
Where
Avg. Strength = (Start of 2020 + Start of 2021) / 2
Profit = from 2020 graph

Data:

CompanyProfitStart-2020Start-2021Avg StrengthProfit/Employee
A201601801700.1176
B402502802650.151
C253603903750.0667
D-20390400395-0.0506

✅ Highest: Company B

Answer: (2) Company B


✅ Final Answer Summary

Q#AnswerReason
6(3) Company CMax profit = 70 in 2021
7(4) Company DMax loss = -20
8(4) Company A0 profit/cost ratio
9(2) Company A0 employee loss
10(2) Company BMax profit per avg employee

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