The following bar graph indicates the demand and production (in hundreds) of 5 companies A, B, C, D and E. X-axis indicates the demand and production (in hundreds) and Y-axis indicates the companies. Study the bar graph carefully and answer the question that follows.

Find the difference between the average demand and average production of the five companies taken together.

The correct answer is 400.

From the given bar graph, the X-axis represents the demand and production values (in hundreds) and the Y-axis lists the five companies (A, B, C, D, and E). The blue bars represent demand and the orange bars represent production.

By inspecting the graph, the values (in hundreds) for each company are:
- Company A: Demand = 35, Production = 30
- Company B: Demand = 25, Production = 40
- Company C: Demand = 30, Production = 25
- Company D: Demand = 30, Production = 40
- Company E: Demand = 40, Production = 45

Step 1: Calculate Total Demand and Total Production for all 5 companies.

$\text{Total Demand}=35+25+30+30+40=160\text{(in hundreds)}$

$\text{Total Production}=30+40+25+40+45=180\text{(in hundreds)}$

Step 2: Find the Average Demand and Average Production.

$\text{Average Demand}=\frac{160}{5}=32\text{(in hundreds)}$

$\text{Average Production}=\frac{180}{5}=36\text{(in hundreds)}$

Step 3: Calculate the difference between average production and average demand.

$\text{Difference in averages}=36-32=4\text{(in hundreds)}$

Converting 4 (in hundreds) into absolute units:

$\text{Actual Difference}=4\times 100=400$

Therefore, the difference between the average demand and average production of the five companies taken together is 400.