Data Interpretation Discussion

**Common Information**

Company XYZ manufactures seven different products - P, Q, R, S, T, U and V. The following pie- charts give the product wise split-up of the total production, total expenses and total sales of the company in a year.

For any product,

$[\text{Profit} = \text{Sales (by value)} - \text{Expenses}]$

$[\text{Profitability (%)} = \dfrac{\text{Profit}}{\text{Sales (by value)}}×100]$

It is known that the company made a profit on each of its products and the units of any product sold in a year are only those that are manufactured in the same year.

Q. |
For which product is the expenditure per unit produced the highest? |

✖ A. |
$R$ |

✖ B. |
$S$ |

✖ C. |
$T$ |

✔ D. |
$V$ |

**Solution:**

Option(**D**) is correct

The manufacturing cost per unit would be the highest for the product for which the ratio of share of expenses to the share of production {by volume} is the highest.

By observation. this ratio is the highest for $\textbf{V}$.

**Edit:** For the calculation part, check comment by **Neha**, also she shares some useful insights.

**Neha**

*()
*

Also, it is wiser not to calculate first and AVOID THE CALCULATION ALTOGETHER. As it is evident from the fractions that $V$ would be the correct choice. Since without even knowing the result, we can OBSERVE that this ratio would be the highest and thus the correct choice.

Also, instead of calculating for all the products, we can calculate only the given choices, i.e. for products $R$, $S$, $T$ and $V$. That would be smart.

$\text{expenditure per unit}=\dfrac{\text{share of expenses}}{\text{share of production \{by volume\} }}$

Now, check for all seven products, P, Q, R, S, T, U and V.

For P,

$=\dfrac{10}{12}$

$=0.833$

For Q,

$=\dfrac{13}{15}$

$=0.867$

For R,

$=\dfrac{15}{13}$

$=1.1.15$

For S,

$=\dfrac{16}{15}$

$=1.067$

For T,

$=\dfrac{14}{16}$

$=0.875$

For U,

$=\dfrac{12}{18}$

$=0.667$

For V,

$=\dfrac{20}{11}$

$=1.818$

Thus, $V$ is the right answer.