Iift 2008 Question 83
This is a detailed step-by-step solution for Iift 2008 Question 83. Understand the concept, common mistakes, and expert tips to solve similar questions in IIFT exam.
IIFT 2008
Let's calculate No of Units as Revenue / Unit price.
Per Unit cost as (Revenue - Profit ) / No of Units.
In that way, we calculate the table as follows.
Let's solve the options one by one,
Option A : Volatility for price per unit : 14-8/11.45 = 0.524
Option B :Volatility for Cost per unit : 13-5/8.91 = 0.898
Option C:Volatility for Total profit : 400-0/154.54 = 2.588
Option D:Volatility for Revenue = 1400-200/809.1 = 1.48
Among the above values ,volatility for total profit is the highest .
Hence C is the correct answer.