Caselets on Missing DI for bank po mains exams
Data Interpretation 1
Mr. Hoola Boola is facing a decision problem. He has excellent training products but is not sure about the demand for his products. He wants to set up a training center to provide training programmes of Sr. Executive, Jr. executive and non-executive level. His financial advisor Mr. Balmas told him that if he wants to set up a non-executive level training centre, the total cost would be on two counts—the first would be a fixed cost which is 2 lakh per annum. Besides, it would also entail a variable cost of training per candidate. This would be 1,000 per candidate trained. He further estimated that if a training centre is set up for conducting Jr. executive and nonexecutive level training programm, the total fixed cost would be Rs 3.2 lakh per annum and the cost of training per candidate will be 750. Mr. Balmas motivates Mr. Hoola to set up a combined training center for Sr. executive, Jr. executive and non-executive, the fixed cost of which is 5 lakh per annum and the cost of providing training per candidate is 500
1)What would be the volume that Mr. Hoola should train where he would be indifferent between setting up a non-executive level and non-executive and Jr. executive level training centre?
2)What would be the volume that Mr. Hoola should train where he would be indifferent between setting up a training centre for jr and non-executive and sr, jr and non executive level.
3)What would be the volume that Mr. Hoola should train where he could be indifferent between setting up a training centre for non-executive
and for all three categories?
4)Assume that Mr. Hoola shares the same vision that Mr. Balmas has and sets up a training centre for all three categories. In the first year he
manages to train 1200 candidates at 1250 per candidate. What would be his profits?
5)In Question 4, what is the profit percentage in the first year of operation?
key : 1.c 2.b 3.d 4.b 5.c