JMET 2007 Paper with answers

Pipes 3000 30
Belts 2500 30
Gears 5000 20
The Total Market Size of a product is estimated to increase yearly at the same rate as its Industry
Attractiveness Index. That is, an Industry Attractiveness Index of 0.6 would imply that Total
Market Size will be 60% more than that of the previous year. A Business Strength Index of 0.4
would imply that the Market Share of the company will increase by 40% of the total Market
Share held by other companies during the previous year.
Solutions 1 to 6:
Product
Total
Market Size
(in million
Rs)
2006-07 2007-08
Market
Share
Profit
% Profit
Total
Market Size
(in million
Rs.)
Market
Share
Profit
%
Profit
Bearing 2200 880 40 352 3960 2534.4 40 1013.6
Valves 1100 220 60 132 1760 492.8 60 295.68
Pipes 3000 1500 30 450 5700 5415 30 1624.5
Belts 2500 750 30 225 3500 1680 30 504
Gears 5000 1500 20 300 8500 4080 20 816
Q.1 The combined profit (in million Rs.) of the three most profitable products in the year 2006-
07 is approximately
(A) 1092 (B) 1102 (C) 1233 (D) 1328
Solutions 1. For the year 2006-07 the three most profitable products are Bearings, Pipes and
Gears and their approximately combined profit is 352 + 450 + 300 = 1102.
Hence the correct option is (B).
Q.2 Which is the most profitable product in the year 2006-07?
(A) Bearings (B) Pipes (C) Belts (D) Gears
Solutions 2. The most profitable product in the year 2006-07 is Pipes with the profit 450 million
Rs. Hence the correct option is (B).
Q.3 Which product would be least profitable in the year 2007-08?
(A) Bearings (B) Valves (C) Pipes (D) Belts
Solutions 3. According to the above table least profitable product in the year 2007-08 is Valves
with the profit 295.68 million Rs. Hence the correct option is (B).