Ghosh Babu's Acquired Companies

CAT 1993 Slot 1 · DILR · Medium · DILR

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Passage / data set

Ghosh Babu has recently acquired four companies namely Arc – Net Technologies (ANT), Babu Anta Transport (BAT), Charles Anter Tailor (CAT) and Daud Akbar Transistors (DAT). When the results of the companies for the year 1992 – 93 were placed before him, he found a few interesting things about them:

  • The profits of CAT and DAT were the same.
  • The sales of CAT were the same as those of BAT.
  • Profits of ANT were 10% of its sales, whereas the profits of BAT were 20% of its sales.
  • Total expenses of CAT were 5 times its profits.
  • Sales of DAT were 3 times its profits.
  • Total expenses of CAT were Rs.10,00,000.
  • Total expenses of ANT were 10% less than those of CAT.
  • Profits = Sales - Total Expenses.

Question 1 of 4

Which company had the lowest sales?

  1. A.

    ANT

  2. B.

    BAT

  3. C.

    CAT

  4. D.

    DAT

Answer

D

Explanation

Let profits of CAT and DAT = xx. Total expenses of CAT = Rs. 10 lakhs   ⟹  5x=10  ⟹  x=2\implies 5x = 10 \implies x = 2 lakhs.

  • CAT: Expenses = 10L, Profit = 2L, Sales = 12L.
  • BAT: Sales = 12L (same as CAT), Profit = 20% of 12L = 2.4L, Expenses = 9.6L.
  • ANT: Expenses = 9L (10% less than CAT), Sales z  ⟹  z−0.9z=0.1z=1z \implies z - 0.9z = 0.1z = 1L profit   ⟹  z=10\implies z = 10L sales.
  • DAT: Profit = 2L, Sales = 3×2=63 \times 2 = 6L, Expenses = 4L.

Thus, DAT had the lowest sales (Rs. 6 lakhs).

Question 2 of 4

Which company had the highest total expenses?

  1. A.

    ANT

  2. B.

    BAT

  3. C.

    CAT

  4. D.

    DAT

Answer

C

Explanation

Expenses: ANT = 9L, BAT = 9.6L, CAT = 10L, DAT = 4L. Thus, CAT had the highest total expenses.

Question 3 of 4

Which company had the lowest profits?

  1. A.

    ANT

  2. B.

    BAT

  3. C.

    CAT

  4. D.

    DAT

Answer

A

Explanation

Profits: ANT = 1L, BAT = 2.4L, CAT = 2L, DAT = 2L. ANT had the lowest profit (Rs. 1 lakh).

Question 4 of 4

Which company had the highest profits?

  1. A.

    ANT

  2. B.

    BAT

  3. C.

    CAT

  4. D.

    DAT

Answer

B

Explanation

BAT had the highest profit of Rs. 2.4 lakhs.

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