CAT4MBA

In the following graph, the first stacked bar gives the gross income of each five friends – A, B, C, D and E – as a percentage of the total gross income of all the five friends put together. The other two stacked bars in the graph gives similar break up of the total taxes paid by the five friends and the total expenses incurred by them. For example, of the total expenses incurred by all the five friends put together,
83.33% - 70% = 13.33% are the expenses incurred by D.

The tax on any gross income upto Rs. P is 10% of the gross income and for any gross income in excess of Rs. P the tax charged will be 10% of rs. P plus 20 % of the gross income in excess of rs. P.
Net income = Gross Income – Taxes
Savings = Net Income – Expenses
For None of the five friends are the expenses is incurred more than the net income.

Q1. If A paid Rs.1000 as taxes, then what is the value oh P?
a. 6,000
b. 8,000
c. 12,000
d. 15,000
e. None of these

Q2. B’s expenses as percentage of his net income, are at most
a. 28.75%
b. 32. 14%
c. 35.28%
d. 37.14%
e. Cannot BE determined

Q3. The person who pays the highest percentage of his gross income as taxses is
a. A
b. B
c. C
d. D
e. E

Q4. Among the five friends, expenses, as a percentage of net income, are the second highest for
a. A
b. B
c. C
d. D
e. Cannot be determined

Q5. A’s savings, as a percentage of his gross income, are at least
a. 20%
b. 25%
c. 35%
d. 30%
e. cannot be determined