ABC26GN2682 · Profit and Loss

Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:

Assuming full occupancy, a bogie of which class exhibits the highest profit margin?
(a)3 tier
(b)AC-3 tier
(c)AC-2 tier
(d)AC-first class
Answer
Answer (as printed): A
Explanation
Clearly, we have: Profit margin = Total fare collected - Total running cost Profit margin exhibited by 3 tier $$\begin{aligned} & =₹[(8 \times 72 \times 300)-(8 \times 10 \times 1100)] \\ & =₹(172800-88000)=₹ 84800 . \end{aligned}$$ Profit margin exhibited by AC - 3 tier $$\begin{aligned} & =₹[(2 \times 64 \times 898)-(2 \times 25 \times 1100)]=₹(114944-55000) \\ & =₹ 59944 . \end{aligned}$$ Profit margin exhibited by AC - 2 tier $$\begin{aligned} & =₹[(2 \times 45 \times 1388)-(2 \times 25 \times 1100)] \\ & =₹(124920-55000)=₹ 69920 . \end{aligned}$$ Profit margin exhibited by AC-first class $$\begin{aligned} & =₹[(1 \times 26 \times 2691)-(1 \times 25 \times 1100)] \\ & =₹(69966-27500)=₹ 42466 . \end{aligned}$$ Clearly, it is the highest for 3 tier.

Explanation as extracted from the printed page; notation may be imperfect.

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