Xavier Aptitude Test 2011 Paper

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DIRECTIONS (Qs. 56-58) : Anwer the questions based on the following information.
Mulchand Textiles produces a single product of only one quality waterproof synthetic fabric. Mr. Sharma, the cost accountant of Mulchand Textiles, estimated the costs of Mulchand Textiles for different possible monthly output levels. Before he could tabulate his estimates his computer crashed, and Mr. Sharma lost all data. Fortunately he had some printouts of some incomplete tables, charts and diagrams. The table titled “Variable Cost Estimates of Mulchand Textiles” provided the estimates of labour and material costs.
 Variable Cost Estimates of Mulchand Textiles
 Output (Square feet)  Labour cost (Rs.)  Material cost (Rs.)
 25000  21500  11050
 50000  41500  22000
 75000  60000  33000
 100000  78000  44000
 125000  95000  54750
 150000  111000  65700
 175000  133000  76650
 200000  160000  88000
Apart from labour and material costs Mulchand Textilesincurs administrative costs of Rs. 40,000 per month, and electricitycosts. Mr. Sharma recalled that estimate data of variable electricitycost had certain peculiar characteristics. Values at every 25,000sq. ft. of output increased in geometric progression till 1,50,000sq. ft. of output, after which values increased in arithmeticprogression for every 25,000 sq. ft. of output. Mr. Sharmaremembered that the electricity cost was estimated to be Rs. 3800for 25000 square feet of ouput, Rs. 5,700 for 50,000 square feet ofoutput and Rs. 38,856.50 for 1,75,000 square feet of output.
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Question : 57 of 101
 
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The estimated material cost given in the table titled “Variable Cost Estimates of Mulchand Textiles” included the cost of material that gets spoiled in the production process. Mr. Sharma decomposed the estimated material cost into material spoilage cost and material usage cost, but he lost the data when his computer crashed. When he saw the following line diagram, he recalled that he measured the estimate of material spoilage cost per square feet of output on the y-axis and monthly output on the x-axis.
Estimated material usage cost per square feet of output
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