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A large store has only three departments, Clothing, Produce, and Electronics. The following figure shows the percentages of revenue an cost from the three departments for the years 2016, 20172017 and 2018. The dotted lines depict percentage levels. So for example, in 2016, 50%50\% of store's revenue came from its Electronics department while 40%40 \% of its costs were incurred in the Produce department.

Figure for CAT 2019 DILR question 2 (Data Interpretation)

In this setup, Profit is computed as (Revenue - Cost) and Percentage Profit as Profit/Cost ×100%\times 100 \%.

It is known that

  1. The percentage profit for the store in 20162016 was 100%100 \%.
  2. The store's revenue doubled from 20162016 to 2017, and its cost doubled from 20162016 to 20182018.
  3. There was no profit from the Electronics department in 20172017.
  4. In 2018, the revenue from the Clothing department was the same as the cost incurred in the Produce department.

What was the ratio of revenue generated from the Produce department in 20172017 to that in 2018?

Solution

✅ Correct Option: 3
Slide 1/8

Understanding the set :-

  1. This is a Ternary Plots or Ternary Diagrams,

A ternary plot is a triangle-shaped chart used to show the proportions of three variables that always add up to a constant total (usually 100%).

In this set, we are looking at how a big store earns money and spends money across three departments:

Clothing, Produce (like fruits/vegetables), and Electronics.

For the years 2016, 2017, and 2018, you're given:

  1. A triangle showing where the store's income (revenue) came from — which department made how much money.
  1. Another triangle showing where the store's expenses (costs) went — which department cost how much to run.
  1. The lines inside these triangles tell you the percentage of total income/cost that came from each department in each year.
YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
2016203050304030
2017304030303040
2018404020205030

This is a table we can make from the chart given in the set.

Clue 1 says,

The percentage profit for the store in 2016 was 100%.

=> If we consider the total cost in the year 2016 as 100,

then, the total revenue in 2016 must be 200 200.

Therefore, profit = 100% of total revenue = 100100% of 200 = 100

therefore, cost = 200−100=100200 - 100 = 100

YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
201730%40 %30%30 %30%40 %
201840%40%20 %20 %50%30 %

Now, we can find the revenue and cost of each department in the year 2016

Revenue in 2016 = 200 :-

  1. Clothing - 200∗(20/100)=40200 * (20/100) = 40
  1. Produce - 200∗(30/100)=60200 * (30/100) = 60
  1. Electronics - 200∗(50/100)=100200 * (50/100) = 100

Cost in 2016 = 100 "-

  1. Clothing - 100∗(30/100)=30100 * (30/100) = 30
  1. Produce - 100∗(40/100)=30100 * (40/100) = 30
  1. Electronics - 100∗(30/100)=30100 * (30/100) = 30
YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
201730%40 %30%30 %30%40 %
201840%40%20 %20 %50%30 %

Now, clue 2 says,

The store’s revenue doubled from 2016 to 2017, and its cost doubled from 2016 to 2018.

=> The store’s revenue doubled from 2016 to 2017,

the total revenue in the year 2016 = 200200.

Thus, the total revenue in the year 2017 = 400400.

YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
201712016012030 %30%40 %
201840%40%20 %20 %50%30 %

Now, we can find the revenue of each department in the year 2017.

for 2017 :

  1. clothing -400∗(30/100)=120400 * (30/100) = 120
  1. Produce - 400∗(40/100)=160400 * (40/100) = 160
  1. Electronics - 400∗(30/100)=120400 * (30/100) = 120
YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
20171201601209090120
201840%40%20 %20 %50%30 %

Now, clue 3 says,

There was no profit from the Electronics department in 2017.

We know revenue of electronics department in 2017 = 120

Since, there was no profit

=> Cost of electronics = 120

=> In 2017,

Cost (electronis) = 40% = 120

=> total cost in 2017 = 300

From which we can find the cost of clothing and produce in 2017 as well,

which is 30% of 300.

YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
20171201601209090120
2018100100504010060

Clue 4 says,

In 2018, the revenue from the Clothing department was the same as the cost incurred in the Produce department.

Also, clue 2 says,

cost doubled from 2016 to 2018.

=> Cost in 2018 = 2∗100=2002 * 100 = 200

=> cost of produce department = 5050% of 200 = 100

=> Revenue from clothing department = 40% = 100100

=> total revenue in 2018 = 250.

YearRevenue - ClothingRevenue - ProduceRevenue - ElectronicsCost - ClothingCost - ProduceCost - Electronics
20164060100304030
20171201601209090120
2018100100504010060

Required ratio= 160:100160 : 100

= 80:5080:50

=8:58:5

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