Logic

Returns on Investment 1. c 2. b Mr. David maximizes the profit 1. b 2. d Health-Drink Company 1. a 2. d 3. e 4. e Actual Costs incurred by the Company 1. b 2. c 3. e 4. a Classification of Students 1. b 2. e 3. a Costs of major surgeries 1. c 2. a 3. d 4. b Airline Company 1. d 2. b 3. c 4. b 5. d

(CAT 2007) A low-cost airline company connects ten Indian cities, A to J. The table below gives the distance between a pair of airports and the corresponding price charged by the company. Travel is permitted only from a departure airport to an arrival airport. The customers do not travel by a route where they have to stop at more than two intermediate airports. 1. What is the lowest price, in rupees, a passenger has to pay for travelling by the shortest route from A to J? a. 2275 b. 2850 c. 2890 d. 2930 e. 3340 2. The company plans to introduce a direct flight between A and J. The market research results indicate that all its existing passengers travelling between A and J will use this direct flight if it is priced 5% below the minimum price that they pay at present. What should the company charge approximately, in rupees, for this direct flight? a. 1991 b. 2161 c. 2707 d. 2745 e. 2783 3. If the airports C, D and H are closed down owing t

(CAT 2007) The Table below shows the comparative costs, in US Dollars, of major surgeries in USA and a select few Asian countries. The equivalent of one US Dollar in the local currencies is given below: A consulting firm found that the quality of the health services were not the same in all the countries above. A poor quality of a surgery may have significant repercussions in future, resulting in more cost in correcting mistakes. The cost of poor quality of surgery is given in the table below: 1. A US citizen is hurt in an accident and requires an angioplasty, hip replacement and a knee replacement. Cost of foreign travel and stay is not a consideration since the government will take care of it. Which country will result in the cheapest package, taking cost of poor quality into account? a. India b. Thailand c. Malaysia d. Singapore e. USA 2. Taking the cost of poor quality into account, which country/countries will be the most expen

(CAT 2007) The proportion of male students and the proportion of vegetarian students in a school are given below. The school has a total of 800 students, 80% of whom are in the Secondary Section and rest are equally divided between Class 11 and 12. 1. What is the percentage of male students in the secondary section? a. 40 b. 45 c. 50 d. 55 e. 60 2. In Class 12, twenty five per cent of the vegetarians are male. What is the difference between the number of female vegetarians and male non-vegetarians? a. less than 8 b. 10 c. 12 d. 14 e. 16 3. What is the percentage of vegetarian students in Class 12? a. 40 b. 45 c. 50 d. 55 e. 60 For answers  click here .

(CAT 2007) 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: 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 as the basis for projecting the figures for the year 2007, answer the following questions: 1. What is the approximate cost per unit in rupees, if the company produces and sells 1400 units in the year 2007? a. 104 b. 107 c. 110 d. 115 e. 116 2. What is the minimum number of units that the company needs to produce and sell to avoid any loss? a. 313 b. 350 c. 384 d. 747 e. 928 3. If the company reduces the price

(CAT 2007) A health-drink company’s R&D department is trying to make various diet formulations, which can be used for certain specific purposes. It is considering a choice of 5 alternative ingredients (O, P, Q, R, and S), which can be used in different proportions in the formulations. The table below gives the composition of these ingredients. The cost per unit of each of these ingredients is O: 150, P: 50. Q: 200, R: 500, S: 100. 1. For a recuperating patient, the doctor recommended a diet containing 10% minerals and at least 30% protein. In how many different ways can we prepare this diet by mixing at least two ingredients? a. One b. Two c. Three d. Four e. None 2. Which among the following is the formulation having the lowest cost per unit for a diet having 10% fat and at least 30% protein? (The diet has to be formed by mixing two ingredients). a. P and Q b. P and S c. P and R d. Q and S e. R and S 3. In what proportion P, Q and S shou

(CAT 2007) Mr. David manufactures and sells a single product at a fixed price in a niche market. The selling price of each unit is Rs. 30. On the other hand, the cost, in rupees, of producing ‘x’ units is 240 + bx + cx^2, where ‘b’ and ‘c’ are some constants. Mr. David noticed that doubling the daily production from 20 to 40 units increases the daily production cost by 66.66 %. However, an increase in daily production from 40 to 60 units results in an increase of only 50% in the daily production cost. Assume that demand is unlimited and that Mr. David can sell as much as he can produce. His objective is to maximize the profit. 1. How many units should Mr. David produce daily? a. 130 b. 100 c. 70 d. 150 e. Cannot be determined 2. What is the maximum daily profit, in rupees, that Mr. David can realize from his business? a. 620 b. 920 c. 840 d. 760 e. Cannot be determined For answers  click here .

(CAT 2007) Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. She has three options, each of which can be utilized fully or partially in conjunction with others. Option A : Invest in a public sector bank. It promises a return of +0.10%. Option B : Invest in mutual funds of ABC Ltd. A rise in the stock market will result in a return of + 5% while a fall will entail a return of –3%. Option C: Invest in mutual funds of CBA Ltd. A rise in the stock market will result in a return of –2.5%, while a fall will entail a return of +2%. 1. The maximum guaranteed return to Shabnam is a. 0.25% b. 0.10% c. 0.20% d. 0.15% e. 0.30% 2. What strategy will maximize the guaranteed return to Shabnam? a. 100% in option A b. 36% in option B and 64% in option C c. 64% in option B and 36% in option C d. 1/3 in each of the three options e. 30% in option A, 32% in option B and 38% in op

Formation of Team 1. a 2. c 3. d 4. e 5. e Class X Result 1. c 2. a 3. a 4. d 5. e   Two traders: Chetan and Michael 1. c 2. b 3. a 4. e 5. d   Street Network 1. e 2. b,c 3. a 4. d 5. c

(CAT 2006) A significant amount of traffic flows from point S to point T in the one-way street network shown below. Points A, B, C, and D are junctions in the network, and the arrows mark the direction of traffic flow. The fuel cost in rupees for travelling along a street is indicated by the number adjacent to the arrow representing the street. Motorists travelling from point S to point T would obviously take the route for which the total cost of travelling is the minimum. If two or more routes have the same least travel cost, then motorists are indifferent between them. Hence, the traffic gets evenly distributed among all the least cost routes. The government can control the flow of traffic only by levying appropriate toll at each junction. For example, if a motorist takes the route S-A-T (using junction A alone), then the total cost of travel would be Rs 14 (i.e., Rs 9 + Rs 5) plus the toll charged at junction A. 1. If the government wants to ensure that no

(CAT 2006) Two traders, Chetan and Michael, were involved in the buying and selling of MCS shares over five trading days. At the beginning of the first day, the MCS share was priced at Rs 100, while at the end of the fifth day it was priced at Rs 110. At the end of each day, the MCS share price either went up by Rs 10, or else, it came down by Rs 10. Both Chetan and Michael took buying and selling decisions at the end of each trading day. The beginning price of MCS share on a given day was the same as the ending price of the previous day. Chetan and Michael started with the same number of shares and amount of cash, and had enough of both. Below are some additional facts about how Chetan and Michael traded over the five trading days. 1)  Each day if the price went up, Chetan sold 10 shares of MCS at the closing price. On the other hand, each day if the price went down, he bought 10 shares at the closing price. 2)  If on any day, the closing price was above Rs 110, then Michael