Boutique Kurtas Production Data Interpretation
XAT 2017 · Quantitative Ability & Data Interpretation · Medium · Data Interpretation
Passage / data set
Abdul has 8 factories, with different capacities, producing boutique kurtas. In the production process, he incurs raw material cost, selling cost (for packaging and transportation) and labour cost. These costs per kurta vary across factories. In all these factories, a worker takes 2 hours to produce a kurta. Profit per kurta is calculated by deducting raw material cost, selling cost and labour cost from the selling price (Profit = selling price - raw materials cost - selling cost - labour cost). Any other cost can be ignored.
Exhibit: Business Details of Abdul's 8 Factories
| Factory | Production Capacity (No of Kurtas) | Selling Price / Kurta (₹) | Profit / Kurta (₹) | Selling Cost / Kurta (₹) | Labour Cost / Hour (₹) |
|---|---|---|---|---|---|
| Factory 1 | 2500 | 4800 | 775 | 60 | 450 |
| Factory 2 | 1500 | 5300 | 800 | 45 | 400 |
| Factory 3 | 800 | 5800 | 900 | 60 | 550 |
| Factory 4 | 1000 | 5500 | 800 | 68 | 450 |
| Factory 5 | 1500 | 5400 | 600 | 75 | 600 |
| Factory 6 | 1100 | 6000 | 875 | 65 | 400 |
| Factory 7 | 2500 | 4900 | 500 | 85 | 350 |
| Factory 8 | 2000 | 5300 | 600 | 70 | 420 |
Question 1 of 4
Which of the following options is in decreasing order of raw materials cost per kurta?
- A.
Factory 3, Factory 4, Factory 7, Factory 5
- B.
Factory 4, Factory 3, Factory 2, Factory 5
- C.
Factory 6, Factory 3, Factory 5, Factory 7
- D.
Factory 6, Factory 8, Factory 7, Factory 2
- E.
Factory 8, Factory 3, Factory 2, Factory 4
A
Explanation
Raw Material Cost = Selling Price - Profit - Selling Cost - (2 * Labour Cost per Hour). Factory 2: 5300 - 800 - 45 - 800 = 3655 Factory 3: 5800 - 900 - 60 - 1100 = 3740 Factory 4: 5500 - 800 - 68 - 900 = 3732 Factory 5: 5400 - 600 - 75 - 1200 = 3525 Factory 7: 4900 - 500 - 85 - 700 = 3615 Comparing option A: Factory 3 (3740) > Factory 4 (3732) > Factory 7 (3615) > Factory 5 (3525). This is correctly decreasing.
Question 2 of 4
Which of the factories listed in the options below has the lowest sales margin (sales margin = profit per kurta divided by selling price per kurta)?
- A.
Factory 2
- B.
Factory 4
- C.
Factory 5
- D.
Factory 6
- E.
Factory 7
E
Explanation
Sales Margins: Factory 2: 800 / 5300 = 0.1509 Factory 4: 800 / 5500 = 0.1454 Factory 5: 600 / 5400 = 0.1111 Factory 6: 875 / 6000 = 0.1458 Factory 7: 500 / 4900 = 0.1020 Lowest is Factory 7.
Question 3 of 4
Abdul has received an order for 2,000 kurtas from a big retail chain. They will collect the finished pre-packaged kurtas directly from the factories, saving him the selling cost. To deliver this order, he can use multiple factories for production. Which of the following options will ensure maximum profit from this order?
- A.
Factory 1
- B.
Factories 2 and 3
- C.
Factories 4 and 6
- D.
Factories 3, 6 and 4
- E.
Factory 1 or Factory 7 or Factory 8
D
Explanation
New Profit per kurta = Original Profit + Selling Cost. Factory 1: 775 + 60 = 835 Factory 2: 800 + 45 = 845 Factory 3: 900 + 60 = 960 (Capacity 800) Factory 4: 800 + 68 = 868 (Capacity 1000) Factory 6: 875 + 65 = 940 (Capacity 1100) Top profit factories per unit are Factory 3 (960), Factory 6 (940), and Factory 4 (868). Combining 800 from Factory 3 + 1100 from Factory 6 + 100 from Factory 4 = 2000 kurtas with maximum total profit.
Question 4 of 4
Abdul has introduced a new technology in all his factories. As a result, a worker needs just 1.5 hours to produce a kurta. If raw materials cost and selling cost remain the same, which of the factories listed in the options below will yield the highest profit per kurta?
- A.
Factory 2
- B.
Factory 3
- C.
Factory 4
- D.
Factory 5
- E.
Factory 6
B
Explanation
Labour hours saved = 0.5 hrs per kurta. New Profit = Original Profit + 0.5 * Labour Cost per hour. Factory 2: 800 + 0.5(400) = 1000 Factory 3: 900 + 0.5(550) = 1175 Factory 4: 800 + 0.5(450) = 1025 Factory 5: 600 + 0.5(600) = 900 Factory 6: 875 + 0.5(400) = 1075 Highest is Factory 3.
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