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MAT Exam 2024 Paper

Question Numbers: 101-104

Data Set 2: Questions 101 – 104

Directions: A manufacturing corporation produces two specialized industrial items (Item I and Item II) across multiple manufacturing hubs. The overall combined baseline capital allocation across all states is

\text{₹}25\text{ Crore}

. Study the specific state metrics provided in the master matrix below to answer the questions.

\begin{center}

State	Overall Allocation	Cost Ratio (Item I : Item II)	Profit Margin (I)	Profit Margin (II)
Uttar Pradesh	$12\%$	$1 : 2$	$30\%$	$24\%$
Haryana	$22\%$	$3 : 2$	$32\%$	—
Punjab	$15\%$	$2 : 3$	—	$20\%$

\end{center}

Question : 101 of 150

Marks: +1, -0

What is the total absolute net profit earned by the manufacturing corporation from its operations located in Uttar Pradesh?

$\text{₹}78\text{ Lakh}$
$\text{₹}82\text{ Lakh}$
$\text{₹}86\text{ Lakh}$
$\text{₹}90\text{ Lakh}$
$\text{₹}94\text{ Lakh}$

Validate

Solution:

Concept:

Find Uttar Pradesh's share of the total capital, split it by the given cost ratio, then add the profit earned on both items.

Explanation:

Total capital across all states is

\text{₹}25\text{ Crore}

Uttar Pradesh receives

12\%

of this, so its allocation is

12\% \times 25 = \text{₹}3\text{ Crore}

This

\text{₹}3\text{ Crore}

is divided between Item I and Item II in the ratio

1:2

Thus, cost of Item I is

\text{₹}1\text{ Crore}

and cost of Item II is

\text{₹}2\text{ Crore}

Profit from Item I:

30\% \times \text{₹}1\text{ Crore} = \text{₹}30\text{ Lakh}

Profit from Item II:

24\% \times \text{₹}2\text{ Crore} = \text{₹}48\text{ Lakh}

Total net profit from Uttar Pradesh

= \text{₹}30\text{ Lakh} + \text{₹}48\text{ Lakh} = \text{₹}78\text{ Lakh}

Answer:

The total absolute net profit is

\text{₹}78\text{ Lakh}

, which is Option A.

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