Question
Rahul used to complete 25 problems in 50 minutes. But now,
his efficiency has dropped by 20%. How much time will he need to complete the same number of problems?Solution
ATQ,
50 minutes
Initial efficiency of Rahul = 50 ÷ 25 = 2 minutes/question
New efficiency = 50 ÷ (25 × 0.8) = 2.5 minutes/question
So, time required to finish 25 questions = 2.5 × 25 = 62.5 minutes
Alternate Solution:
Ratio of new efficiency to old = 0.8:1 = 4:5
So, ratio of new time to old = 5:4
Required time taken = 50 × (5/4) = 62.5 minutes
Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs
Interest = ₹10 lakhs
Calculate (i) Operating Leverage and (...
A high Inventory Turnover Ratio indicates:
Which of the following is a useful liquidity metric for short-term creditors?
A firm evaluates two projects with identical expected cash flows, but Project A has higher variability. If the firm is risk-averse, what would be its de...
A firm uses 70% debt financing at 10% interest. Its ROE rises despite flat operating profits. What explains this phenomenon?
A firm’s gross profit is ₹50 lakh, sales are ₹2 crore. What is its gross profit margin?
A company refinances a short-term loan (due in 4 months) after the balance sheet date but before the financial statements are authorised. Management arg...
Which of the following formulae correctly calculates the Operating Profit Margin?
XYZ Ltd. is a medium-sized manufacturing company. Its summarized Balance Sheet and additional financial information for the year ended 31st March 2024 a...
While preparing cash flow statement, an entity (other than a financial institution) should disclose the dividends received from its investment in shares...