The table below gives the revenue and the profit (both in ₹ crore) of five companies – P, Q, R, S and T – for the financial years 2015 and 2016.
| Company | Revenue 2015 | Profit 2015 | Revenue 2016 | Profit 2016 |
|---|---|---|---|---|
| P | 400 | 60 | 460 | 69 |
| Q | 250 | 30 | 300 | 45 |
| R | 500 | 50 | 550 | 44 |
| S | 320 | 48 | 352 | 64 |
| T | 180 | 27 | 225 | 36 |
For any company and year: Expenses = Revenue − Profit, and Profit margin = (Profit ÷ Revenue) × 100%.
| Company | Revenue 2015 | Profit 2015 | Revenue 2016 | Profit 2016 |
|---|---|---|---|---|
| P | 400 | 60 | 460 | 69 |
| Q | 250 | 30 | 300 | 45 |
| R | 500 | 50 | 550 | 44 |
| S | 320 | 48 | 352 | 64 |
| T | 180 | 27 | 225 | 36 |
For any company and year: Expenses = Revenue − Profit, and Profit margin = (Profit ÷ Revenue) × 100%.
Question 1
Single correct option
Which company had the highest profit margin in 2016?
- A. P
- B. Q
- C. S
- D. T
Show answer and solution
Answer: (C) S
2016 margins: P = 69/460 = 15%; Q = 45/300 = 15%; R = 44/550 = 8%; S = 64/352 ≈ 18.18%; T = 36/225 = 16%.
Highest is S.
Tip: S's profit is exactly 1/5.5 of revenue (352 = 5.5 × 64), while T's is 1/6.25 — comparing revenue/profit ratios avoids decimals.
Highest is S.
Tip: S's profit is exactly 1/5.5 of revenue (352 = 5.5 × 64), while T's is 1/6.25 — comparing revenue/profit ratios avoids decimals.
Question 2
Single correct option
Which company recorded the highest percentage growth in profit from 2015 to 2016?
- A. Q
- B. S
- C. T
- D. P
Show answer and solution
Answer: (A) Q
Profit growth: P = 9/60 = 15%; Q = 15/30 = 50%; R = −6/50 = −12%; S = 16/48 = 33.3%; T = 9/27 = 33.3%.
Highest is Q. Note T has the highest *revenue* growth (25%), which is a trap.
Highest is Q. Note T has the highest *revenue* growth (25%), which is a trap.
Question 3
Numerical answer
By how much (in ₹ crore) did the total expenses of the five companies taken together increase from 2015 to 2016?
Show answer and solution
Answer: 194
Expenses = Revenue − Profit.
2015: P 340, Q 220, R 450, S 272, T 153 → total 1435.
2016: P 391, Q 255, R 506, S 288, T 189 → total 1629.
Increase = 1629 − 1435 = 194.
Shortcut: Increase in expenses = (increase in total revenue) − (increase in total profit) = (1887 − 1650) − (258 − 215) = 237 − 43 = 194.
2015: P 340, Q 220, R 450, S 272, T 153 → total 1435.
2016: P 391, Q 255, R 506, S 288, T 189 → total 1629.
Increase = 1629 − 1435 = 194.
Shortcut: Increase in expenses = (increase in total revenue) − (increase in total profit) = (1887 − 1650) − (258 − 215) = 237 − 43 = 194.
Question 4
Single correct option
For how many of the five companies did the profit margin increase from 2015 to 2016?
- A. 2
- B. 3
- C. 4
- D. 5
Show answer and solution
Answer: (B) 3
Compare margins:
| Company | Margin 2015 | Margin 2016 | Profit growth |
|---|---|---|---|
| P | 15% | 15% | 15% |
| Q | 12% | 15% | 50% |
| R | 10% | 8% | −12% |
| S | 15% | 18.18% | 33.3% |
| T | 15% | 16% | 33.3% |
Margin increased for Q, S and T → 3 companies. P's margin stayed exactly 15% (both revenue and profit grew 15%), so it does not count; R's fell.
| Company | Margin 2015 | Margin 2016 | Profit growth |
|---|---|---|---|
| P | 15% | 15% | 15% |
| Q | 12% | 15% | 50% |
| R | 10% | 8% | −12% |
| S | 15% | 18.18% | 33.3% |
| T | 15% | 16% | 33.3% |
Margin increased for Q, S and T → 3 companies. P's margin stayed exactly 15% (both revenue and profit grew 15%), so it does not count; R's fell.
Saved on this device. Sign in or create a free account to keep it on every device.