CAT 2019 Question Paper | CAT LR DI Slot 2

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CAT DILR : CAT 2019 Question Paper Slot 2

Set 8 : Revenue & Cost

A large store has only three departments, Clothing, Produce, and Electronics. The following figure shows 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 is computed as (Revenue – Cost) and Percentage Profit as Profit/Cost × 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 2 : What was the ratio of revenue generated from the Produce department In 2017 to that in 2018?

1. 8 : 5
2. 16 : 9
3. 4 : 3
4. 9 : 16

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Video Explanation

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Explanatory Answer

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The question is "What was the ratio of revenue generated from the Produce department In 2017 to that in 2018?"

Hence, the answer is 8 : 5

Choice A is the correct answer.

 

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