Comprehension

DIRECTIONS for the following three questions: Answer the questions on the basis of the information given below.

Each point in the graph below shows the profit and turnover data for a company. Each company belongs to one of the three industries: textile, cement and steel.

Question: 1

For how many companies does the profit exceed 10% of turnover?

Show Hint

Profit is more than 10% of turnover when the point lies above the line profit = turnover / 10. Check each of the 13 points against that line.
Updated On: Nov 7, 2026
  • 8
  • 7
  • 6
  • 5
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The Correct Option is B

Solution and Explanation

Step 1: Read the graph:
Each point is one company. The horizontal axis is turnover and the vertical axis is profit. Reading the points as (turnover, profit), with values accurate to the nearest few units:
Textile: (750, 120), (1770, 210), (2810, 110), (3770, 220). Cement: (2210, 275), (2210, 170), (2610, 360), (3260, 150). Steel: (1260, 225), (1260, 175), (2270, 120), (2610, 320), (3410, 275).
That is 13 companies in all (4 textile, 4 cement, 5 steel).

Step 2: What we test:
A company has profit above 10% of turnover when profit is more than one tenth of its turnover. So for every point we find \(0.1 \times \text{turnover}\) and compare it with the profit.

Step 3: Textile companies:
(750, 120): 10% of 750 is 75 and 120 is more. Yes.
(1770, 210): 10% of 1770 is 177 and 210 is more. Yes.
(2810, 110): 10% of 2810 is 281 and 110 is less. No.
(3770, 220): 10% of 3770 is 377 and 220 is less. No.
Textile gives 2.

Step 4: Cement companies:
(2210, 275): 10% is 221 and 275 is more. Yes.
(2210, 170): 10% is 221 and 170 is less. No.
(2610, 360): 10% is 261 and 360 is more. Yes.
(3260, 150): 10% is 326 and 150 is less. No.
Cement gives 2.

Step 5: Steel companies:
(1260, 225): 10% is 126 and 225 is more. Yes.
(1260, 175): 10% is 126 and 175 is more. Yes.
(2270, 120): 10% is 227 and 120 is less. No.
(2610, 320): 10% is 261 and 320 is more. Yes.
(3410, 275): 10% is 341 and 275 is less. No.
Steel gives 3.

Step 6: Add up:
\[ 2 + 2 + 3 = 7 \]
Option (1), 8, would need one more company above the line, but every left-out point is far below it (for example the cement point at (3260, 150) needs 326). Options (3) and (4), 6 and 5, drop points that are clearly above the 10% mark, such as the steel point at (1260, 175).

Final Answer:
Seven companies have profit above 10% of turnover, which is option (2). \[ \boxed{\text{Option (2): 7}} \]
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Question: 2

For how many steel companies with a turnover of more than 2000 is the profit less than 300?

Show Hint

Look only at the steel points. Keep those to the right of turnover 2000, then see how many of them lie below the 300 gridline.
Updated On: Nov 7, 2026
  • 0
  • 1
  • 2
  • 7
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The Correct Option is C

Solution and Explanation

Step 1: Pick the steel companies:
Steel companies are the green triangles. Their (turnover, profit) readings are about (1260, 225), (1260, 175), (2270, 120), (2610, 320) and (3410, 275). So there are 5 steel companies.

Step 2: Keep turnover above 2000:
The two steel points at turnover about 1260 are below 2000, so they are out. The ones left are (2270, 120), (2610, 320) and (3410, 275).

Step 3: Keep profit below 300:
The horizontal gridline at 300 is easy to use. (2270, 120) is below it, so it counts. (3410, 275) is below it, so it counts. (2610, 320) is above 300, so it does not count.
That leaves 2 companies.

Step 4: Why the other options fail:
0 and 1 miss one or both of the points at 120 and 275. The number 7 is more than the total of steel companies with turnover above 2000, which is only 3. Only 2 is correct.

Final Answer:
Two steel companies satisfy both conditions, which is option (3). \[ \boxed{\text{Option (3): 2}} \]
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Question: 3

An investor wants to buy stock of only steel or cement companies with a turnover more than 1000 and profit exceeding 10% of turnover. How many choices are available to the investor?

Show Hint

Only steel and cement points count. Keep those with turnover above 1000, then see which lie above the line profit = turnover / 10.
Updated On: Nov 7, 2026
  • 4
  • 5
  • 6
  • 7
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The Correct Option is B

Solution and Explanation

Step 1: List the conditions:
The investor wants steel or cement companies (so textile is out), with turnover above 1000, and profit above 10% of turnover.

Step 2: Cement companies:
Cement points (turnover, profit) are about (2210, 275), (2210, 170), (2610, 360) and (3260, 150). All four have turnover above 1000.
10% of turnover: 221, 221, 261 and 326. Profit above that: (2210, 275) yes, (2210, 170) no, (2610, 360) yes, (3260, 150) no.
Cement gives 2.

Step 3: Steel companies:
Steel points are about (1260, 225), (1260, 175), (2270, 120), (2610, 320) and (3410, 275). All five have turnover above 1000.
10% of turnover: 126, 126, 227, 261 and 341. Profit above that: (1260, 225) yes, (1260, 175) yes, (2270, 120) no, (2610, 320) yes, (3410, 275) no.
Steel gives 3.

Step 4: Add up:
\[ 2 + 3 = 5 \]
The turnover condition removes nobody here, because the smallest turnover among these companies is about 1260. The 10% condition alone does the work.

Step 5: Why the other options fail:
Options 6 and 7 would count textile points or points below the 10% mark. Textile is excluded by the question, so those counts cannot happen. Option 4 misses one valid company. Only 5 fits.

Final Answer:
Five choices are available to the investor, which is option (2). \[ \boxed{\text{Option (2): 5}} \]
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