Quiz 4

Option(C) Explanation Total revenues are Rs. 1800 crores. Overall profit margin is 10%. Overall profit is Rs. 180 crores. Exactly one division has the same profit margin as the overall Company. So, for this division, share of revenues should be equal to share of profits. Or, one of Company A or D has a profit margin of 10%. Let us also compute absolute profit numbers – the 5 numbers are Rs. 35 crores, Rs. 40 crores, Rs. 25 crores, Rs. 30 crores and Rs. 50 crores The division with the largest revenue has the least profit margin but not the least profits. So, E has the least profit margin but not the least profits. Company D generates more profits than Company E, so Company E does not generate the least profit either.  So, Company E should generate profits of Rs. 35 crores or Rs. 40 crores.  Now, this is the critical statement – “The division with the profit margin higher than all others generates the least profit.” Company C has the least revenue, and by a distance. So, chances are division C should have the highest profit margin. The least profit margin for division C should be 16.67%. Now, if the Rs. 25 crore profit were for any other division, the profit margin of that division would be less than 16.67%. This tells us that the Rs. 25 crore profit is made by division C at a profit margin of 16.67%.  So, this is where we stand now. The three missing profit numbers are Rs. 50 crores, Rs. 40 crores and Rs. 35 crores. Company E did not generate profit of Rs. 50 crores. So, the Rs. 50 crore profit number should have been seen by either B or D. If it had been D, then D would also have had a profit margin of 16.67%. But this is not possible as the question says – “The division with the profit margin higher than all others generates the least profit.”. The above statement tells us that no company aprt from C had a profit margin of 16.67% or more.  So, Company B should have seen a profit of Rs. 50 crores. Company D generates more profit than E, so E should have seen a profit of Rs. 35 crores and D a profit of Rs. 40 crores. Company A saw profits of Rs. 30 crores.  We do not even need to solve the whole grid for this. The statement “Exactly one division has the same profit margin as the overall Company.” alone is sufficient

Option (B) Explanation - Please refers to 1st question explanation.

Option (C) Explanation - please refer to 1st explanation

Option (D) Explanation please refer 1st explanation.