The two plots below show data for four companies code-named A, B, C, and D over three years - 2019, 2020, and . The first plot shows the revenues and costs incurred by the companies during these years. For example, in 2021, company C earned Rs. crores in revenue and spent Rs. crores. The profit of a company is defined as its revenue minus its costs.
The second plot shows the number of employees employed by the company (employee strength) at the start of each of these three years, as well as the number of new employees hired each year (new hires). For example, Company B had employees at the start of 2021, and new employees joined the company during the year.
Solution
Understanding the set :-
- This is a scatter plot (or scatter chart) representation, this is a type of graph used to show how two things are related — in this case:
Revenue (money earned) is shown on the bottom line (x-axis).
Costs (money spent) is shown on the side line (y-axis).
Each dot (or shape) shows how much money a company earned and spent in a particular year.
Triangles (▲) are for the year 2019 (blue).
Squares (■) are for the year 2020 (orange).
Circles (●) are for the year 2021 (gray).
So if you see a dot far to the right, it means high revenue.
If it’s high up, it means high costs.
- In this question there are 2 scatter chart -
a) shows the revenues and costs incurred
b) shows the number of employees employed by the company (employee strength)
| Year → | 2019 | 2020 | 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particular ↓ | A | B | C | D | A | B | C | D | A | B | C | D |
| Revenue (in Rs. Crores) | 90 | 100 | 23 | 50 | 90 | 90 | 70 | 20 | 60 | 30 | 100 | 70 |
| Cost (in Rs. Crores) | 85 | 75 | 20 | 40 | 65 | 40 | 60 | 50 | 30 | 30 | 30 | 70 |
| Profit (in Rs. Crores) | 5 | 25 | 3 | 10 | 25 | 50 | 10 | -30 | 30 | 0 | 70 | 0 |
| Employee Strength | 150 | 210 | 325 | 400 | 140 | 240 | 325 | 410 | 150 | 250 | 325 | 400 |
| New Hires | 20 | 35 | 45 | 30 | 35 | 45 | 40 | 35 | 25 | 30 | 35 | 40 |
This table contains all the information given in the two charts together.
1st chart contains revenue on x axis
and cost on Y axis
subtracting which (Revenue - Profit) we will get Profit.
2nd chart contains Employee strength on x - axis
and new hires on Y axis.
Making a table like this is not compulsory, as it would eat up a lot of time, you can rather just write down only those data which the questions
of the set demands.
| Year → | 2019 | 2020 | 2021 | |||||||||
| Particular ↓ | A | B | C | D | A | B | C | D | A | B | C | D |
| Revenue (in Rs. Crores) | 90 | 100 | 23 | 50 | 90 | 90 | 70 | 20 | 60 | 30 | 100 | 70 |
| Cost (in Rs. Crores) | 85 | 75 | 20 | 40 | 65 | 40 | 60 | 50 | 30 | 30 | 30 | 70 |
| Profit (in Rs. Crores) | 5 | 25 | 3 | 10 | 25 | 50 | 10 | -30 | 30 | 0 | 70 | 0 |
| Employee Strength | 150 | 210 | 325 | 400 | 140 | 240 | 325 | 410 | 150 | 250 | 325 | 400 |
| New Hires | 20 | 35 | 45 | 30 | 35 | 45 | 40 | 35 | 25 | 30 | 35 | 40 |
Performance = Annual Profit / Annual Cost
For year 2019,
Performance of A =
Performance of B =
Performance of C =
Performance of D =
Hence, the company that had the lowest performance ratio is company A