Question

Answer the following questions on the basis of the data given below.

Jamshedpur Electronics sells Television sets and IPods through three retail outlets located in Bistupur, Sakchi and Kadma. The table below gives the sales figures (in Rupees thousand) of these two products for the months of January, February and March.

Note: Units ordered = Units sold + Ending inventory - Beginning inventory. All other things remain constant, and all Rupee figures are in thousands.

Ten percent of the sales value of IPods and twenty percent of the sales value of Television contribute to the profits of Jamshedpur Electronics. How much profit did the company earn in the month of January from Bistupur and Kadma together, from the two products combined?

• A. 513
• B. 4410
• C. 3645
• D. 5230

Hint:

Pick out only the January figures for Bistupur and Kadma before applying the 20% Television share and the 10% IPods share.

Answer 1

The Correct Option is C

Step 1: Pick out only the figures the question asks about.
The question restricts us to January, and to only two of the three areas, Bistupur and Kadma (Sakchi is left out).
January Television sales: Bistupur = 900, Kadma = 6300, so together = 900 + 6300 = 7200 (Rupees thousand).
January IPods sales: Bistupur = 15750, Kadma = 6300, so together = 15750 + 6300 = 22050 (Rupees thousand).

Step 2: Apply the correct profit percentage to each product.
The rule is 20% of Television sales value counts as profit, and 10% of IPods sales value counts as profit. Applying these to the January, Bistupur-plus-Kadma figures:
20% of Television sales = 0.20 x 7200 = 1440.
10% of IPods sales = 0.10 x 22050 = 2205.

Step 3: Add the two profit contributions.
Total profit = 1440 + 2205 = 3645 (Rupees thousand).

Why the other options are wrong:
513 comes from using only a fraction of one product's contribution and ignoring the other. 4410 is what you get if you mistakenly apply 20% to the IPods figure alone (0.20 x 22050 = 4410) instead of splitting the percentages correctly between the two products. 5230 comes from swapping which percentage goes with which product across both lines at once.

Final Answer:
The profit earned in January from Bistupur and Kadma together is Rupees 3645 thousand.
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