Question Details

Study the line chart and table given below and answer the following questions


Line chart shows the number of chairs manufactured by 4 different chair manufacturers (A, B, C & D) in 2016 & 2017 and table shows the number of chairs sold by these manufacturers in 2016 & 2017.


Manufacturer Chairs sold
2016 2017
A 840 1440
B 900 1080
C 570 900
D 810 720

If manufacturing cost of a chair for D in 2016 & 2017 is Rs .200 and selling price of a chair for D in 2016 & 2017 is Rs.250 and Rs.400 respectively, then find profit% is maximum in which year among 2016 & 2017 for D? (D destroyed all the unsold chairs in these 2 years)

Options

A

Maximum in 2017

B

Maximum in 2016

C

Equal in 2016 & 2017

D

None of these

E

Cannot be determined

Show Answer

Correct Answer :

Option A

Maximum in 2017

Solution :

Correct Option: Maximum in 2017


Let's analyze the visual data provided in the line chart and table for manufacturer D in both 2016 and 2017.


From the line chart, the total number of chairs manufactured by D is:

Chairs manufactured in 2016: 900

Chairs manufactured in 2017: 1200


From the table, the total number of chairs sold by D is:

Chairs sold in 2016: 810

Chairs sold in 2017: 720


Given information:

• Cost Price (CP) per manufactured chair = Rs. 200 (in both 2016 & 2017)

• Selling Price (SP) per sold chair in 2016 = Rs. 250

• Selling Price (SP) per sold chair in 2017 = Rs. 400

• Note: Unsold chairs were destroyed, meaning total expenditure/cost is calculated on all manufactured chairs.


Step 1: Calculations for the year 2016

Total Cost Price (CP) in 2016 = Total Manufactured Chairs × Cost Price per Chair

Total CP (2016)=900×200=Rs. 1,80,000

Total Revenue/Selling Price (SP) in 2016 = Total Sold Chairs × Selling Price per Chair

Total SP (2016)=810×250=Rs. 2,02,500

Profit in 2016 = Total SP - Total CP

Profit (2016)=2,02,500-1,80,000=Rs. 22,500

Profit percentage in 2016:

Profit% (2016)=22,5001,80,000×100=12.5%


Step 2: Calculations for the year 2017

Total Cost Price (CP) in 2017 = Total Manufactured Chairs × Cost Price per Chair

Total CP (2017)=1200×200=Rs. 2,40,000

Total Revenue/Selling Price (SP) in 2017 = Total Sold Chairs × Selling Price per Chair

Total SP (2017)=720×400=Rs. 2,88,000

Profit in 2017 = Total SP - Total CP

Profit (2017)=2,88,000-2,40,000=Rs. 48,000

Profit percentage in 2017:

Profit% (2017)=48,0002,40,000×100=20%


Conclusion:

Comparing the profit percentages of both years (12.5% in 2016 vs 20% in 2017), the profit percentage is Maximum in 2017.

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