CAT Quantitative Aptitude Questions | CAT Ratios, Mixtures, Alligations and Averages Questions

The question is from CAT Ratio, Mixtures and Averages. It is about alligation. When a club increases its fees separately for two different groups, what could be the overall change? CCAT exam is known to test on basics rather than high funda ideas. A range of CAT questions can be asked from Ratios and Proportions, Mixtures, Alligations and Averages. Make sure you master the topics. 2IIMs CAT questions bank provides you with CAT questions that can help you gear for CAT Exam CAT 2023.

Question 27: 40% of a club’s revenue comes from people of 25 years of age while 60% of its revenue comes from people of 35 years of age. If the club raises its fee by 20% for its 25 years old members and 30% for 35 years old members, what is the percentage increase in overall revenue of the club?

1. 26%
2. 25%
3. 24%
4. 23%

Explanatory Answer

Method of solving this CAT Question from Ratio, Mixtures and Averages: When we mix two mixtures in a particular ratio, we get a third mixture. Given the third mixture how does one find the ratio in which they were mixed.

The ages 25 years and 35 years are just to confuse and do not have any role in the solution.
Here, 40% and 60% are n1 and n2 while increase in 20% and 30% are A1 and A2 so,

=> \\frac{(30-x)}{(x-20)}\\) = \\frac{40}{60}\\)
=> \\frac{(30-x)}{(x-20)}\\) = \\frac{2}{3}\\)
=> 90 – 3x = 2x – 40
=> 130 = 5x => x = 26%

The question is "what is the percentage increase in overall revenue of the club?"

Hence, the answer is "26%".

Choice A is the correct answer.