Question

Which of the following options is in decreasing order of raw materials cost?

• A. Factory 3, Factory 4, Factory 7, Factory 5
• B. Factory 4, Factory 3, Factory 2, Factory 5
• C. Factory 6, Factory 3, Factory 5, Factory 7
• D. Factory 6, Factory 8, Factory 7, Factory 2
• E. Factory 8, Factory 3, Factory 2, Factory 4
• A. Factory 2
• B. Factory 4
• C. Factory 5
• D. Factory 6
• J. Factory 7
• A. Factory 1
• B. Factories 2 and 3
• C. Factories 4 and 6
• D. Factories 3, 6 and 4
• O. Factory 1 or Factory 7 or Factory 8
• A. Factory 2
• B. Factory 3
• C. Factory 4
• D. Factory 5
• T. Factory 6

Answer 1

The Correct Option is A

To determine the decreasing order of raw materials cost, we first need to calculate the raw material cost per kurta for each factory. The formula for raw material cost is given by:

Raw Material Cost per Kurta (RMC) = Selling Price - Profit - Selling Cost - Labour Cost

• Factory 3:
  RMC = 5800 - 900 - 60 - (550*2) = 3740
• Factory 4:
  RMC = 5500 - 800 - 68 - (450*2) = 3682
• Factory 7:
  RMC = 4900 - 500 - 85 - (350*2) = 3615
• Factory 5:
  RMC = 5400 - 600 - 75 - (600*2) = 3525
• Factory 6:
  RMC = 6000 - 875 - 65 - (400*2) = 4260
• Factory 8:
  RMC = 5300 - 600 - 70 - (420*2) = 3790
• Factory 2:
  RMC = 5300 - 800 - 45 - (400*2) = 3655

Now, we sort the factories based on the raw material cost in decreasing order:

• Factory 6: 4260
• Factory 8: 3790
• Factory 3: 3740
• Factory 4: 3682
• Factory 2: 3655
• Factory 7: 3615
• Factory 5: 3525

From the given options, the correct decreasing order of raw materials cost that matches is:

Factory 3, Factory 4, Factory 7, Factory 5

Answer 2

1) Understanding the concept.
The sales margin is calculated as: \[ \text{Sales Margin} = \frac{\text{Profit per kurta}}{\text{Selling Price per kurta}}. \] Here, \(\text{Profit per kurta} = \text{Selling Price} - \text{Cost Price}\). Thus: \[ \text{Sales Margin} = \frac{\text{Selling Price} - \text{Cost Price}}{\text{Selling Price}} = 1 - \frac{\text{Cost Price}}{\text{Selling Price}}. \]

2) Implication.
The sales margin is lowest when the \(\frac{\text{Cost Price}}{\text{Selling Price}}\) ratio is highest. In other words, if the cost price is almost equal to the selling price, the margin is very low.


3) Application to given factories.
By analyzing the data (selling prices and costs of each factory given in the table of the set this question belongs to): - Factory 2 had a moderate difference between selling and cost.
- Factory 4 had a reasonable margin.
- Factory 5 and Factory 6 had visibly higher margins than Factory 7.
- Factory 7 had its cost price nearly equal to its selling price, making its margin the smallest.


4) Conclusion.
Hence, the lowest sales margin belongs to

Factory 7.

Answer 3

Step 1: Objective after selling cost is waived.
Since the retailer picks up the goods, Abdul bears \emph{no selling cost}. Profit per kurta from factory $i$ becomes \[ \text{Contribution}_i=\text{Order price received}-\text{(production + packaging cost at }i\text{)}. \] Thus, to maximize profit for a fixed demand (2,000 units) with factory-wise capacities, allocate production in \emph{descending order of contribution per unit} until the demand is met.

Step 2: Rank factories by contribution and meet demand.
From the given DI table (from the set), the highest contributions are achieved by

Factory 3, then

Factory 6, followed by

Factory 4. Their combined capacity suffices to complete 2,000 kurtas; using any lower-contribution factory would reduce total profit.

Step 3: Eliminate alternatives.
\begin{itemize} \item

(A) Single factory either lacks capacity or has lower contribution than the top trio. \item

(B) and

(C) do not exhaust the best contributions and/or fall short on capacity at maximum margin. \item

(E) Proposes single lower-margin choices; suboptimal versus combining the top three. \end{itemize}

Final Answer: \[ \boxed{\text{(D) Factories 3, 6 and 4}} \]

Answer 4

Step 1: What changes with the new technology?
Original labour time per kurta $=2$ hrs; new time $=1.5$ hrs.
Raw material and selling costs stay unchanged, and selling price is unchanged.
Hence the

only change in profit per kurta is the labour component: \[ \Delta(\text{profit per kurta}) \;=\; (2-1.5)\times(\text{labour cost per hour}) \;=\; 0.5 \times \text{(labour/hr)}. \] Therefore, \[ \text{New profit per kurta} \;=\; \text{Old profit per kurta} \;+\; 0.5 \times \text{(labour/hr)}. \]

Step 2: Compute the new profit for the listed factories (using the exhibit). \[ \begin{aligned} \text{F2:}&\quad 800 + 0.5\times 400 = 1000,
\text{F3:}&\quad 900 + 0.5\times 550 = 1175,
\text{F4:}&\quad 800 + 0.5\times 450 = 1025,
\text{F5:}&\quad 600 + 0.5\times 600 = 900,
\text{F6:}&\quad 875 + 0.5\times 300 = 1025. \end{aligned} \]

Step 3: Conclusion.
The maximum new profit per kurta is \(\mathbf{1175}\) at

Factory 3.

Final Answer: \[ \boxed{\text{B. Factory 3}} \]