Multiple choice

Passage

Directions: Read the given information carefully and answer the following question. The following pie-chart shows the percentage distribution of the total number of cars manufactured by 6 different MNCs in the year 2015 and the table shows the percentage sales of these cars by the respective MNCs. (Total number of cars manufactured by all 6 MNCs is 5,50,000) MNC % Sale P 72% Q 80% R 84% S 65% T 70% U 75%

If company Q increases its sales by 25% as well as its production by 30%, then what is the percentage change in the number of unsold cars of company Q?

  1. 10%

  2. 20%

  3. 30%

  4. 50%

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let total cars = 100. Q's production = Pq. Sales = 0.8*Pq. Unsold = 0.2*Pq. New production = 1.3*Pq. New sales = 1.25 * (0.8*Pq) = 1.0*Pq. New unsold = 1.3*Pq - 1.0*Pq = 0.3*Pq. Change in unsold = (0.3 - 0.2) / 0.2 = 0.1 / 0.2 = 50%.

AI explanation

Let company Q's initial production be 100 units with a sales rate of 80%, resulting in 80 sold units and 20 unsold units. The new production becomes 130 units (a 30% increase) and the new sales volume becomes 100 units (80 multiplied by 1.25). The new number of unsold cars is 30, which is an increase of 10 units from the original 20 unsold units. This represents a 50% increase in unsold cars, making the correct answer 50%.

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