CAT 2022 Slot 2 · DILR · Question 13
CAT 2022 Slot 2 previous year question on Reasoning Based DI, with the answer and a step-by-step solution.
Set 3: Revenue, Costs and Employees of Four Companies — this question belongs to a set. Read the full set with all 5 questions →
The two plots below show data for four companies code-named A, B, C, and D over three years - 2019, 2020, and 2021.
The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs.100 crores in revenue and spent Rs.30 crores. The profit of a company is defined as its revenue minus its costs.
The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had 250 employees at the start of 2021, and 30 new employees joined the company during the year.
- ACompany A
- BCompany D
- CCompany B
- DCompany C
Answer & solution
Answer: Option A
Solving the set
Step 1 – Read the first plot (revenue on the horizontal axis, cost on the vertical axis) and compute profit = revenue − cost (Rs. crores).
Company | 2019 (Rev, Cost, Profit) | 2020 (Rev, Cost, Profit) | 2021 (Rev, Cost, Profit) |
A | 90, 85, 5 | 90, 65, 25 | 60, 30, 30 |
B | 100, 75, 25 | 90, 40, 50 | 30, 30, 0 |
C | 25, 20, 5 | 70, 60, 10 | 100, 30, 70 |
D | 50, 40, 10 | 20, 50, −30 | 70, 70, 0 |
Step 2 – Read the second plot (employee strength at the start of the year on the horizontal axis, new hires on the vertical axis).
Company | Start 2019 | Hires 2019 | Start 2020 | Hires 2020 | Start 2021 | Hires 2021 |
A | 150 | 20 | 140 | 35 | 150 | 25 |
B | 210 | 35 | 240 | 45 | 250 | 30 |
C | 325 | 45 | 325 | 40 | 325 | 35 |
D | 400 | 30 | 410 | 35 | 400 | 40 |
Step 3 – Employees lost during a year = strength at the start + hires − strength at the start of the next year.
This question
Company | 2019 profit | 2019 cost | Profit / cost |
A | 5 | 85 | 0.06 |
B | 25 | 75 | 0.33 |
C | 5 | 20 | 0.25 |
D | 10 | 40 | 0.25 |
Company A has the lowest profit-to-cost ratio in 2019.
Hence, the answer is option 1.
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