Smartphones Market Share and Profitability

CAT 2018 Slot 2 · DILR · Medium · Data Interpretation

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Passage / data set

There are only four brands of entry level smartphones called Azra, Bysi, Cxqi, and Dipq in a country. Details about their market share, unit selling price, and profitability (defined as the profit as a percentage of the revenue) for the year 2016 are given in the table below:

BrandMarket Share (%)Unit Selling Price (Rs.)Profitability (%)
Azra4015,00010
Bysi2520,00030
Cxqi1530,00040
Dipq2025,00030

In 2017, sales volume of entry level smartphones grew by 40% as compared to that in 2016. Cxqi offered a 40% discount on its unit selling price in 2017, which resulted in a 15% increase in its market share. Each of the other three brands lost 5% market share. However, the profitability of Cxqi came down to half of its value in 2016. The unit selling prices of the other three brands and their profitability values remained the same in 2017 as they were in 2016.

Question 1 of 4

The brand that had the highest revenue in 2016 is:

  1. A.

    Cxqi

  2. B.

    Bysi

  3. C.

    Azra

  4. D.

    Dipq

Answer

C

Explanation

Let total volume in 2016 be 100100 units. Revenues in 2016:

  • Azra: 40×15,000=600,00040 \times 15,000 = 600,000
  • Bysi: 25×20,000=500,00025 \times 20,000 = 500,000
  • Cxqi: 15×30,000=450,00015 \times 30,000 = 450,000
  • Dipq: 20×25,000=500,00020 \times 25,000 = 500,000

Azra had the highest revenue in 2016.

Question 2 of 4

The brand that had the highest profit in 2016 is:

  1. A.

    Azra

  2. B.

    Dipq

  3. C.

    Bysi

  4. D.

    Cxqi

Answer

D

Explanation

Profits in 2016:

  • Azra: 10%×600,000=60,00010\% \times 600,000 = 60,000
  • Bysi: 30%×500,000=150,00030\% \times 500,000 = 150,000
  • Cxqi: 40%×450,000=180,00040\% \times 450,000 = 180,000
  • Dipq: 30%×500,000=150,00030\% \times 500,000 = 150,000

Cxqi had the highest profit in 2016.

Question 3 of 4

The brand that had the highest profit in 2017 is:

  1. A.

    Azra

  2. B.

    Bysi

  3. C.

    Cxqi

  4. D.

    Dipq

Answer

B

Explanation

In 2017, overall sales volume grew by 40% (total volume = 140 units). Market Shares: Cxqi = 30%, Azra = 35%, Bysi = 20%, Dipq = 15%. Units sold:

  • Azra: 0.35×140=490.35 \times 140 = 49
  • Bysi: 0.20×140=280.20 \times 140 = 28
  • Cxqi: 0.30×140=420.30 \times 140 = 42
  • Dipq: 0.15×140=210.15 \times 140 = 21

Prices and profitability in 2017:

  • Cxqi: Price =30,000×0.6=18,000= 30,000 \times 0.6 = 18,000, Profitability = 20%
    • Revenue =42×18,000=756,000= 42 \times 18,000 = 756,000; Profit =20%×756,000=151,200= 20\% \times 756,000 = 151,200
  • Azra: Revenue =49×15,000=735,000= 49 \times 15,000 = 735,000; Profit =10%×735,000=73,500= 10\% \times 735,000 = 73,500
  • Bysi: Revenue =28×20,000=560,000= 28 \times 20,000 = 560,000; Profit =30%×560,000=168,000= 30\% \times 560,000 = 168,000
  • Dipq: Revenue =21×25,000=525,000= 21 \times 25,000 = 525,000; Profit =30%×525,000=157,500= 30\% \times 525,000 = 157,500

Bysi had the highest profit in 2017 (168,000168,000).

Question 4 of 4

The complete list of brands whose profits went up in 2017 from 2016 is:

  1. A.

    Bysi, Cxqi, Dipq

  2. B.

    Azra, Bysi, Cxqi

  3. C.

    Cxqi, Azra, Dipq

  4. D.

    Azra, Bysi, Dipq

Answer

D

Explanation

Comparing Profits (2016 vs 2017):

  • Azra: 60,000 -> 73,500 (Increased)
  • Bysi: 150,000 -> 168,000 (Increased)
  • Dipq: 150,000 -> 157,500 (Increased)
  • Cxqi: 180,000 -> 151,200 (Decreased)

Thus, profits went up for Azra, Bysi, and Dipq.

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