Data Interpretation Logical Reasoning (Part 7 of 7)
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Directions: Answer these questions on the basis of the information given below:
The following table shows the breakup of actual costs incurred by a company in last five years (year 2002 to year 2006) to produce a particular product:
Year  Year 2002  Year 2003  Year 2004  Year 2005  Year 2006 
Volume of production and sale (units)  Volume 1000  Volume 900  Volume 1100  Volume 1200  Volume 1200 
Cost in Rs.  Below  Below  Below  Below  Below 
Material  Rs. 50, 000  Rs. 45, 100  Rs. 55, 200  Rs. 59, 900  Rs. 60, 000 
Labour  Rs. 20, 000  Rs. 18, 000  Rs. 22, 100  Rs. 24, 150  Rs. 24, 000 
Consumables  Rs. 2, 000  Rs. 2, 200  Rs. 1, 800  Rs. 1, 600  Rs. 1, 400 
Rent of building  Rs. 1, 000  Rs. 1, 000  Rs. 1, 100  Rs. 1, 100  Rs. 1, 200 
Rates and taxes  Rs. 400  Rs. 400  Rs. 400  Rs. 400  Rs. 400 
Repair and maintenance expenses  Rs. 800  Rs. 820  Rs. 780  Rs. 790  Rs. 800 
Operating cost of machines  Rs. 30, 000  Rs. 27, 000  Rs. 33, 500  Rs. 36, 020  Rs. 36, 000 
Selling and marketing expenses  Rs. 5, 750  Rs. 5, 800  Rs. 5, 800  Rs. 5, 750  Rs. 5, 800 
The production capacity of the company is 2000 units. The selling price for the year 2006 was Rs. 125 per unit. Some costs change almost in direct proportion to the change in volume of production, while others do not follow any obvious pattern of change with respect to the volume of production and hence are considered fixed. Using the information provided for the year 2006 asthe basis for projecting the figures for the year 2007, answer the following questions:

What is the approximate cost per unit in rupees, ifthe company produces and sells 1400 units in the year 2007?

Cost 104

Cost 107

Cost 110

Cost 115

Cost 116


What is the minimum number of units that the company needs to produce and sell to avoid any loss?

Units 313

Units 350

Units 384

Units 747

Units 928


Given that the company cannot sell more than 1700 units, and it will have to reduce the price by Rs. 5 for all units, if it wants to sell more than 1400 units, what is the maximum profit, in rupees, that the company can earn?

25, 400

24, 400

31, 400

32, 900

32, 000


If the company reduces the price by 5%, it can produce and sell as many units as it desires. How many units the company should produce to maximize its profit?

Units 1400

Units 1600

Units 1800

Units 1900

Units 2000
