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Data Interpretation for CAT | DI: Pie Charts

The set is from Pie Charts. The revenues and the profits of five divisons of a company is given. Our task is to determine the profit and profit margin of some divisons which is asked in the follow up questions. With simple arithmetic calculations, you can ace this topic. Pie Chats in CAT is an important topic for CAT Exam, and we can expect a set in the CAT Data Interpretation and Logical Reasoning section in the CAT Exam

DI Pie Charts: Revenues and Profits

Total revenues are Rs. 1800 crores. Overall profit margin is 10%. The division with the largest revenue has the least profit margin but not the least profits. The division with the profit margin higher than all others generates the least profit. Exactly one division has the same profit margin as the overall Company. Company D generates more profits than Company E.

Data Interpretation: Pie Charts

Data Interpretation: Pie Charts


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Explanatory Answer

Method of solving this CAT Question from Pie Charts: Simple lengthy calculations!!

General Solution

Total revenues are Rs. 1800 crores. Overall profit margin is 10%. Overall profit is Rs. 180 crores. Exactly one division has the same profit margin as the overall Company. So, for this division, share of revenues should be equal to share of profits. Or, one of Company A or D has a profit margin of 10%.

Data Interpretation: Pie Charts
Let us also compute absolute profit numbers – the 5 numbers are Rs. 35 crores, Rs. 40 crores, Rs. 25 crores, Rs. 30 crores and Rs. 50 crores
The division with the largest revenue has the least profit margin but not the least profits.
So, E has the least profit margin but not the least profits. Company D generates more profits than Company E, so Company E does not generate the least profit either.
So, Company E should generate profits of Rs. 35 crores or Rs. 40 crores.
Now, this is the critical statement – “The division with the profit margin higher than all others generates the least profit.” Company C has the least revenue, and by a distance. So, chances are division C should have the highest profit margin. The least profit margin for division C should be 16.67%. Now, if the Rs. 25 crore profit were for any other division, the profit margin of that division would be less than 16.67%. This tells us that the Rs. 25 crore profit is made by division C at a profit margin of 16.67%.
So, this is where we stand now.

Data Interpretation: Pie Charts
The three missing profit numbers are Rs. 50 crores, Rs. 40 crores and Rs. 35 crores.
Company E did not generate profit of Rs. 50 crores. So, the Rs. 50 crore profit number should have been seen by either B or D. If it had been D, then D would also have had a profit margin of 16.67%. But this is not possible as the question says – “The division with the profit margin higher than all others generates the least profit.”. The above statement tells us that no company aprt from C had a profit margin of 16.67% or more.
So, Company B should have seen a profit of Rs. 50 crores.

Data Interpretation: Pie Charts
Company D generates more profit than E, so E should have seen a profit of Rs. 35 crores and D a profit of Rs. 40 crores.

Data Interpretation: Pie Charts
Question 1: How much profit did Company A make?
a. Rs. 50 crores
b. Rs. 25 crores
c. Rs. 30 crores
d. Rs. 60 crores
Company A saw profits of Rs. 30 crores. Choice C.
We do not even need to solve the whole grid for this. The statement “Exactly one division has the same profit margin as the overall Company.” alone is sufficient.

Question 2: What was the profit margin for company B?
a. 12.33%
b. 8.33%
c. 11.11%
d. 12.5%
Profit margin of B was 11.11%. Choice C

Question 3: How much profit did company E make?
a. Rs. 40 crores
b. Rs. 35 crores
c. Rs. 50 crores
d. Rs. 60 crore
Company E made Rs. 35 crore profit. Choice B

Question 4: Which company saw a profit margin of 13.33%?
Company D had a profit margin of 13.33%

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