Instructions

Study the sector wise sales of a group of companies for the financial year 2004 - 2005 and answer the following questions.

Question 42

The average profit against the sales across the sectors is 10% while the profit margin of engineering is 12% and CIS, 20%. What is the average profit across the remaining sectors?

Solution

Let us represent the sales revenue in terms of 'k'.

Total sales revenue = 100k

Sales revenue from Engineering = 31k

Sales revenue from CIS = 19k

Remaining revenue from other sectors = 50k

Profit margin = Profit/Revenue

Let the profit margin of remaining sectors be x%.

So the eqn is:

10*100k = x*50k + 12*31k + 20*19k

after cancelling 'k' from both sides, we get:

=> x = 4.94% (answer)


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