A shaving set company sells 4 different types of razors, Elegance, Smooth,…

2016

A shaving set company sells 4 different types of razors, Elegance, Smooth, Soft and Executive. Elegance sells at Rs. 48, Smooth at Rs. 63, Soft at Rs. 78 and Executive at Rs. 173 per piece. The table below shows the numbers of each razor sold in each quarter of a year.

Which product contributes the greatest fraction to the revenue of the company in that year?

Answer: B. Executive — Step 1: Compute total units sold and revenue for each product. Elegance: 27,300 + 25,222 + 28,976 + 21,012 = 102,510 units; Revenue = 102,510 × Rs.48 =…

  1. A.

    Elegance

  2. B.

    Executive

  3. C.

    Smooth

  4. D.

    Soft

Attempted by 27 students.

Show answer & explanation

Correct answer: B

Step 1: Compute total units sold and revenue for each product.

  • Elegance: 27,300 + 25,222 + 28,976 + 21,012 = 102,510 units; Revenue = 102,510 × Rs.48 = Rs.4,920,480

  • Smooth: 20,009 + 19,392 + 22,429 + 18,229 = 80,059 units; Revenue = 80,059 × Rs.63 = Rs.5,043,717

  • Soft: 17,602 + 18,445 + 19,544 + 16,595 = 72,186 units; Revenue = 72,186 × Rs.78 = Rs.5,630,508

  • Executive: 9,999 + 8,942 + 10,234 + 10,109 = 39,284 units; Revenue = 39,284 × Rs.173 = Rs.6,796,132

Step 2: Compute total revenue and each product’s share.

Total revenue = Rs.4,920,480 + Rs.5,043,717 + Rs.5,630,508 + Rs.6,796,132 = Rs.22,390,837

  • Elegance share = 4,920,480 / 22,390,837 ≈ 0.2197 (21.97%)

  • Smooth share = 5,043,717 / 22,390,837 ≈ 0.2252 (22.52%)

  • Soft share = 5,630,508 / 22,390,837 ≈ 0.2514 (25.14%)

  • Executive share = 6,796,132 / 22,390,837 ≈ 0.3037 (30.37%)

Key result: Executive contributes the largest fraction of the annual revenue (about 30.37%), so Executive is the product that contributes the greatest fraction to the company’s revenue for the year.

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