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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 : 103 of 150

Marks: +1, -0

What is the collective baseline manufacturing cost of production spent for Item I across the states of Punjab and Haryana combined?

$\text{₹}4.2\text{ Crore}$
$\text{₹}4.8\text{ Crore}$
$\text{₹}5.4\text{ Crore}$
$\text{₹}5.9\text{ Crore}$
$\text{₹}6.3\text{ Crore}$

Validate

Solution:

Concept:

From each state’s allocation and cost ratio, find the portion spent on Item I only.

Explanation:

Total capital is

\text{₹}25\text{ Crore}

Punjab receives

15\%

, so its share is

15\% \times 25 = \text{₹}3.75\text{ Crore}

Its cost ratio Item I : Item II is

2:3

, so Item I fraction is

\frac{2}{2+3}=\frac{2}{5}

Punjab’s spend on Item I is

\frac{2}{5}\times 3.75=\text{₹}1.5\text{ Crore}

Haryana receives

22\%

, so its share is

22\% \times 25 = \text{₹}5.5\text{ Crore}

Its cost ratio Item I : Item II is

3:2

, so Item I fraction is

\frac{3}{3+2}=\frac{3}{5}

Haryana’s spend on Item I is

\frac{3}{5}\times 5.5=\text{₹}3.3\text{ Crore}

Combined cost for Item I is

1.5+3.3=\text{₹}4.8\text{ Crore}

Answer:

Option B.

\text{₹}4.8\text{ Crore}

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