A company's revenue ($R$) and costs ($C$) in lakhs of rupees for four quarters are:
Q1: $R=50, C=40$
Q2: $R=70, C=50$
Q3: $R=60, C=55$
Q4: $R=90, C=65$
Which of the following statements are CORRECT?
Options:
(A) Quarter Q4 yielded the maximum absolute profit (revenue minus cost).
(B) The total profit across all four quarters is 60 lakhs.
(C) Profit margin (profit / revenue) was highest in Q2.
(D) Quarter Q3 had higher profit than Quarter Q1.
Answer Key:
A, B, C
Step-by-Step Solution & Explanation
Profits:
Q1: $50 - 40 = 10$ lakhs (margin $10/50 = 20.0\%$)
Q2: $70 - 50 = 20$ lakhs (margin $20/70 = 28.57\%$)
Q3: $60 - 55 = 5$ lakhs (margin $5/60 = 8.33\%$)
Q4: $90 - 65 = 25$ lakhs (margin $25/90 = 27.78\%$)
- Total profit $= 10 + 20 + 5 + 25 = 60$ lakhs (B is true).
- Q4 had the highest profit of 25 lakhs (A is true).
- Q2 had the highest profit margin of $28.57\%$ (C is true).
- Q3 (5) had less profit than Q1 (10) (D is false).