CAT 2022 Slot 2 DILR Set 4 Q16–Q20

A DILR caselet from the Data Interpretation & Logical Reasoning (DILR) section of CAT 2022 Slot 2, with 5 questions (Charts & Tables). Answers are CAT's official key.

The set

This set relies on a figure in the original paper, which is not reproduced here. The questions and answers are below.

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.

[Figure in the original paper]

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.

[Figure in the original paper]

Question 16

Considering all three years, which company had the highest annual profit?
  1. A
    Company C
  2. B
    Company B
  3. C
    Company A
  4. D
    Company D

Answer: (A) Company C Charts & Tables MCQ

Solution

  1. Profits (revenue - cost) from plot 1: A 5, 25, 30; B 25, 50, 0; C 5, 10, 70; D 10, -30, 0 (for 2019, 2020, 2021).
  2. The highest single-year profit is C in 2021: \(100-30=70\) crores.

Shortcut. Look for the point farthest below the line revenue = cost.

Question 17

Which of the four companies experienced the highest annual loss in any of the years?
  1. A
    Company D
  2. B
    Company C
  3. C
    Company A
  4. D
    Company B

Answer: (A) Company D Charts & Tables MCQ

Solution

  1. Profits (revenue - cost) from plot 1: A 5, 25, 30; B 25, 50, 0; C 5, 10, 70; D 10, -30, 0 (for 2019, 2020, 2021).
  2. The only loss is D in 2020: \(20-50=-30\) crores, the largest loss.

Question 18

The ratio of a company's annual profit to its annual costs is a measure of its performance. Which of the four companies had the lowest value of this ratio in 2019?
  1. A
    Company A
  2. B
    Company B
  3. C
    Company C
  4. D
    Company D

Answer: (A) Company A Charts & Tables MCQ

Solution

  1. 2019 points: A (90, 85), B (100, 75), C (25, 20), D (50, 40).
  2. Profit/cost: A \(5/85\approx0.06\), B \(25/75\approx0.33\), C \(5/20=0.25\), D \(10/40=0.25\). A is the lowest.

Question 19

The total number of employees lost in 2019 and 2020 was the least for:
  1. A
    Company A
  2. B
    Company C
  3. C
    Company B
  4. D
    Company D

Answer: (C) Company B Charts & Tables MCQ

Solution

  1. Plot 2 (start strength, hires): 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.
  2. Employees lost in a year = start + hires - next year's start.
  3. A: \((150+20-140)+(140+35-150)=30+25=55\). B: \(5+35=40\). C: \(45+40=85\). D: \(20+45=65\).
  4. Least is Company B.

Question 20

Profit per employee is the ratio of a company's profit to its employee strength. For this purpose, the employee strength in a year is the average of the employee strength at the beginning of that year and the beginning of the next year. In 2020, which of the four companies had the highest profit per employee?
  1. A
    Company B
  2. B
    Company A
  3. C
    Company D
  4. D
    Company C

Answer: (A) Company B Charts & Tables MCQ

Solution

  1. Profits (revenue - cost) from plot 1: A 5, 25, 30; B 25, 50, 0; C 5, 10, 70; D 10, -30, 0 (for 2019, 2020, 2021).
  2. Plot 2 (start strength, hires): 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.
  3. Average 2020 strength: A \((140+150)/2=145\), B \((240+250)/2=245\), C 325, D 405.
  4. Profit per employee: A \(25/145\approx0.17\), B \(50/245\approx0.20\), C \(10/325\approx0.03\), D negative. Highest is B.

Same concept in other years

See every question on Scatter/bubble plot DI: read coordinates and areas to compare entities.

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