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Price(Rs./unit) 10000 11000 11000 11000 12000<br />
Fixed cost (in million) 18 30 30 40 40<br />
Total Variable cost (in million) 84 122 141 161 172<br />
Total Production cost ( in million) 102 152 171 201 212<br />
Revenue(in million ) 120 187 176 209 228<br />
Cumulative unsold stock 2000 3000 7000 5000 1000<br />
Q.7 At the end of which year was the quantity of cumulative unsold stock the largest?<br />
(A) 2002-03 (B) 2003-04 (C) 2004-05 (D) None of the above<br />
Solutions 7. According to the table cumulative unsold stock is maximum for the year 2004-05.<br />
Hence the correct option is (C).<br />
Q.8 Assuming all cash transactions, the cumulative cash in hand <strong>with</strong> the company (in million<br />
Rs.) at the end of 2006-07 is<br />
(A) 16 (B) 20 (C) 82 (D) 87<br />
Solutions 8. We know that, in starting manufacturing company has five million in hand at the<br />
beginning of 2002-03 and his profit in 2002-03 is 18 million rupees and profit for 2003-04,<br />
2004-05,2005-06 and 2006-07 are 35, 5, 8, and 16 million rupees. Hence the cumulative cash in<br />
hand at the end of year 2006-07 will be 5+18+35+8+16 = 87. Hence the correct option is (D).<br />
Q.9 The percentage increase in cumulative cash in hand over the preceding year was the highest<br />
in<br />
(A) 2002-03 (B) 2003-04 (C) 2004-05 (D) 2005-06<br />
Solutions 9. According to the table percentage increase in cumulative cash in hand over the<br />
preceding year was highest in 2003-04:<br />
Hence the correct option is (B).<br />
Q.10 The increase in the difference between income and costs in a year over the preceding year<br />
was the largest in<br />
(A) 2003-04 (B) 2004-05 (C) 2005-06 (D) 2006-07<br />
Solutions 10. Differences between the income and the cost for the year 2002-03 is 18 million<br />
Rupees and for year 2003-04, 2004-05, 2005-06 and 2006-07 are 35, 5, 8 and 16 million rupees<br />
respectively.<br />
Thus we can say the highest increase in differences would be for the year 2003-04 i.e. .<br />
Hence, the correct option is (A).<br />
Q.11 If the company was able to sell all the units that it produced during a year in the same year,<br />
the cash in hand (in million Rs) at the end of 2006-07 would be<br />
(A) 87 (B) 92 (C) 102 (D) 117<br />
Solutions 11. If company was able to sell all the units that it produced during a year in the same<br />
year then the cash in hand at the end of 2002-03 would be 38 million rupees ( 14 ? 10 – 102 =
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