More Questions from Profit and Loss

Directions: Read the following information carefully and answer the questions that follow: A train journey from P to D by an X-express has 4 classes of fares | Class | Fare | Berths per bogie | Train Composition | | :--- | :--- | :--- | :--- | | 3 tier | ₹ 300 | 72 berths per bogie | Train has 8 bogies | | AC-3 tier | ₹ 898 | 64 berths per bogie | Train has 2 bogies | | AC-2 tier | ₹ 1388 | 45 berths per bogie | Train has 2 bogies | | AC-first class | ₹ 2691 | 26 berths per bogie | Train has 1 bogie | The distance between P and D is 1100 km. Assume that the train does not stop at any station unless otherwise indicated. The running cost per kilometre: AC - bogie – ₹ 25, non-AC-bogie – ₹ 10 The highest revenue for a journey from P to D will always be generated by

Aptitude Profit and Loss Difficulty: Easy
Choose an option
  • A
    AC- 2 tier
  • B
    3 tier
  • C
    AC-3 tier
  • D
    Cannot be determined

Answer

Correct Answer: Cannot be determined

Explanation

### Concept & Logical Deduction Total revenue depends on both the ticket price (fare), total capacity, and the actual occupancy rate on a given day. $$\text{Revenue} = \text{Fare} \times \text{Occupied Berths}$$ ### Step-by-Step Solution * If we assume **full occupancy**, the revenues generated are: * 3 tier: ₹ 1,72,800 * AC-2 tier: ₹ 1,24,920 * AC-3 tier: ₹ 1,14,944 * AC-first class: ₹ 69,966 * Under full occupancy, 3 tier generates the highest revenue. * However, the question states "will **always** be generated by". * Because the problem does not guarantee fixed occupancy rates (e.g., the 3-tier bogies might be completely empty while the AC bogies are full), revenue generation is variable. ### Exam Strategy & Shortcut Whenever a question uses absolute qualifiers like "always" regarding a metric that relies on variable inputs (like passenger occupancy), the answer is almost always "Cannot be determined" unless the minimum threshold of one exceeds the maximum of all others. ### Common Pitfall Students often calculate maximum potential revenue, see that 3-tier is the highest, and mistakenly select it, missing the crucial qualifying word "always". ### Final Answer Therefore, the correct answer is **Cannot be determined**.
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