Question Details

Comprehension:


The two plots below give the following information about six firms A, B, C, D, E, and F for 2019 and 2023. PAT: The firm’s profits after taxes in Rs. crores, ES: The firm’s employee strength, that is the number of employees in the firm, and PRD: The percentage of the firm’s PAT that they spend on Research and Development (RandD). In the plots, the horizontal and vertical coordinates of point representing each firm gives their ES and PAT values respectively. The PRD values of each firm are proportional to the areas around the points representing each firm. The areas are comparable between the two plots, i.e., equal areas in the two plots represent the same PRD values for the two years.


Which among the firms A, C, E, and F had the maximum PAT per employee in 2023?

Options

A

Firm A

B

Firm F

C

Firm E

D

Firm C

Show Answer

Correct Answer :

Option B

Firm F

Solution :

The correct option is Firm F.

To determine which of the given firms (A, C, E, and F) had the maximum Profit After Tax (PAT) per employee in 2023, we use the following relation:
PAT per employee = PAT (in Rs. crores) Employee Strength (ES)
From the 2023 plot, we can extract the coordinates (ES, PAT) for each of the relevant firms by reading their horizontal and vertical positions:

1. Firm F:
Looking at the point labeled F in the 2023 plot:
- The horizontal coordinate (ES) is exactly at 1000.
- The vertical coordinate (PAT) is exactly at 3200 crores.
Calculating PAT per employee:
PAT per employee for F = 3200 1000 = 3.2  crores per employee

2. Firm A:
Looking at the point labeled A in the 2023 plot:
- The horizontal coordinate (ES) is at 1300.
- The vertical coordinate (PAT) is at 3900 crores.
Calculating PAT per employee:
PAT per employee for A = 3900 1300 = 3.0  crores per employee

3. Firm C:
Looking at the point labeled C in the 2023 plot:
- The horizontal coordinate (ES) is at 1400.
- The vertical coordinate (PAT) is at 3500 crores.
Calculating PAT per employee:
PAT per employee for C = 3500 1400 = 2.5  crores per employee

4. Firm E:
Looking at the point representing Firm E (which corresponds to the bottom-left coordinate of the 2023 plot):
- The horizontal coordinate (ES) is at 800.
- The vertical coordinate (PAT) is at 2400 crores.
Calculating PAT per employee:
PAT per employee for E = 2400 800 = 3.0  crores per employee

Comparing these values:
- Firm F: 3.2 crores/employee
- Firm A: 3.0 crores/employee
- Firm E: 3.0 crores/employee
- Firm C: 2.5 crores/employee

Therefore, among the firms A, C, E, and F, Firm F had the maximum PAT per employee in 2023.

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