Revenue and Cost Analysis across Departments

CAT 2019 Slot 2 · DILR · Medium · Data Interpretation

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Passage / data set

A large store has only three departments, Clothing, Produce, and Electronics. The figures show the percentages of revenue and cost from the three departments for the years 2016, 2017 and 2018. The dotted lines depict percentage levels. So for example, in 2016, 50% of store's revenue came from its Electronics department while 40% of its costs were incurred in the Produce department.

In this setup, Profit=Revenue−Cost\text{Profit} = \text{Revenue} - \text{Cost} and Percentage Profit=ProfitCost×100%\text{Percentage Profit} = \frac{\text{Profit}}{\text{Cost}} \times 100\%.

It is known that:

  1. The percentage profit for the store in 2016 was 100%.
  2. The store's revenue doubled from 2016 to 2017, and its cost doubled from 2016 to 2018.
  3. There was no profit from the Electronics department in 2017.
  4. In 2018, the revenue from the Clothing department was the same as the cost incurred in the Produce department.

Question 1 of 4

What was the percentage profit of the store in 2018?

Answer

25

Explanation

Let 2016 Cost = 100  ⟹  2016 Revenue=200100 \implies 2016 \text{ Revenue} = 200. From condition 2, 2018 Cost = 200200. From condition 4, 2018 Revenue from Clothing = 2018 Cost from Produce. Solving the proportion gives 2018 Revenue = 250250. Profit percentage in 2018 =250−200200×100%=25%= \frac{250 - 200}{200} \times 100\% = 25\%.

Question 2 of 4

What was the ratio of revenue generated from the Produce department in 2017 to that in 2018?

  1. A.

    8 : 5

  2. B.

    16 : 9

  3. C.

    4 : 3

  4. D.

    9 : 16

Answer

A

Explanation

2017 Produce Revenue =20% of 400=80= 20\% \text{ of } 400 = 80. 2018 Produce Revenue =20% of 250=50= 20\% \text{ of } 250 = 50. Ratio =80:50=8:5= 80 : 50 = 8 : 5.

Question 3 of 4

What percentage of the total profits for the store in 2016 was from the Electronics department?

Answer

70

Explanation

In 2016: Total Revenue = 200, Total Cost = 100, Total Profit = 100. Electronics Revenue =50% of 200=100= 50\% \text{ of } 200 = 100. Electronics Cost =30% of 100=30= 30\% \text{ of } 100 = 30. Electronics Profit =100−30=70= 100 - 30 = 70. Percentage of total profit =70100×100%=70%= \frac{70}{100} \times 100\% = 70\%.

Question 4 of 4

What was the approximate difference in profit percentages of the store in 2017 and 2018?

  1. A.

    8.3

  2. B.

    33.3

  3. C.

    25.0

  4. D.

    15.5

Answer

A

Explanation

Profit % in 2017 =33.3%= 33.3\%. Profit % in 2018 =25.0%= 25.0\%. Difference =33.3−25.0=8.3%= 33.3 - 25.0 = 8.3\%.

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