# 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 break-up 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:

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

1. Cost 104

2. Cost 107

3. Cost 110

4. Cost 115

5. Cost 116

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

1. Units 313

2. Units 350

3. Units 384

4. Units 747

5. Units 928

3. 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?

1. 25, 400

2. 24, 400

3. 31, 400

4. 32, 900

5. 32, 000

4. 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?

1. Units 1400

2. Units 1600

3. Units 1800

4. Units 1900

5. Units 2000