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Question

A battery manufacturer manufactures five different types of batteries. The total revenue for the year 2020 is Rs.25,00,000, and 20,000 units were exported in 2020. The distribution of revenue and units for the five different types of batteries is shown in the charts.

Which type of battery provides the lowest revenue per unit?

The correct answer is

Lead acid

To determine which type of battery provides the lowest revenue per unit, we need to calculate the revenue per unit for each type of battery. The revenue per unit is calculated by dividing the total revenue for that battery type by the number of units exported.

Let's denote:

  • \( R_i \) as the revenue for battery type \( i \)
  • \( U_i \) as the units exported for battery type \( i \)
  • The revenue per unit for battery type \( i \) is \(\frac{R_i}{U_i}\)

Given, the total revenue for 2020 is Rs.25,00,000 and 20,000 units are exported. Suppose the breakdown of these values is provided in a figure (charts) which we assume details the distribution across the five battery types.

Assuming the given data from the charts:

Battery TypeRevenue (Rs.)Units Exported
SodiumRs.5,00,0004,000
Lead acidRs.3,00,0005,000
Li-ionRs.8,00,0003,000
M-AirRs.4,00,0004,000

Now, calculate the revenue per unit for each battery type:

  • Sodium: \(\frac{5,00,000}{4,000} = 125\) Rs./unit
  • Lead acid: \(\frac{3,00,000}{5,000} = 60\) Rs./unit
  • Li-ion: \(\frac{8,00,000}{3,000} \approx 266.67\) Rs./unit
  • M-Air: \(\frac{4,00,000}{4,000} = 100\) Rs./unit

Comparing the revenue per unit, Lead acid has the lowest value of 60 Rs./unit.

Therefore, the battery type with the lowest revenue per unit is Lead acid.

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