Question

The total expenditure is required to be kept within Rs. 700 lakh by cutting the expenditure on administration equally in all the years. What will be the percentage cut for 1989?

• A. 22.6
• B. 32.6
• C. 42.5
• D. 52.6
• A. 0.9
• B. 0.7
• C. 0.6
• D. 0.3
• A. 1 : 4
• B. 2.8 : 1
• C. 3 : 12 : 1
• D. 4 : 16 : 1
• A. Rs. 11.4 lakh
• B. Rs. 16.4 lakh
• C. Rs. 21.4 lakh
• D. Rs. 26.4 lakh
• A. 39
• B. 29
• C. 19
• D. 9
• A. 1.37
• B. 2.45
• C. 3.50
• D. 4.62

Answer 1

The Correct Option is B

The table provides the total cost for each year and the breakdown of costs by category. The total cost for each year is given as:
- 1988: Rs. 52.1 lakh
- 1989: Rs. 267.5 lakh
- 1990: Rs. 196.4 lakh
- 1991: Rs. 209.5 lakh
The total expenditure for all years is: \[ 52.1 + 267.5 + 196.4 + 209.5 = 725.5 \text{lakh} \]
To keep the total expenditure within Rs. 700 lakh, we need to reduce the total expenditure by: \[ 725.5 - 700 = 25.5 \text{lakh} \]
The reduction needs to be distributed equally across all years. The total administration expenditure across the years is as follows:
- 1988: Rs. 7.5 lakh
- 1989: Rs. 15.0 lakh
- 1990: Rs. 15.0 lakh
- 1991: Rs. 15.0 lakh
The total administration expenditure for all years is: \[ 7.5 + 15.0 + 15.0 + 15.0 = 52.5 \text{lakh} \]
The total reduction of Rs. 25.5 lakh will be distributed equally, so each year will experience a cut of: \[ \frac{25.5}{4} = 6.375 \text{lakh} \]
For 1989, the cut in administration cost will be Rs. 6.375 lakh. The percentage cut for 1989 is calculated as: \[ \frac{6.375}{15.0} \times 100 = 42.5% \]
Thus, the percentage cut for 1989 is 42.5%, corresponding to option (C).

Answer 2

We are given that the length of the line to be laid each year is in proportion to the estimated cost for material and labour. We are also given the total costs for the years, which we can use to calculate the fraction of the total length completed in each year.
The total cost for the entire project is the sum of the estimated costs for all four years. The costs for each year (from the data) are as follows: - Year 1: Rs. 41.5 crore
- Year 2: Rs. 7.5 crore
- Year 3: Rs. 95 crore
- Year 4: Rs. 80 crore
The total cost is: \[ 41.5 + 7.5 + 95 + 80 = 224 \text{crore} \]
For the third year, the total cost for the first three years is: \[ 41.5 + 7.5 + 95 = 144 \text{crore} \]
Thus, the fraction of the total length completed by the third year is: \[ \frac{144}{224} = 0.6429 \text{or approximately} 0.6 \]
Therefore, the fraction of the total length completed by the third year is 0.6, corresponding to option (C).

Answer 3

We are asked to find the ratio of the total cost of materials to the total labour cost. From the table, we have the costs for materials and labour for each year. We will calculate the total material cost and total labour cost over the four years.
- Year 1 (1988): Materials = Rs. 41.5 crore, Labour = Rs. 2.1 crore
- Year 2 (1989): Materials = Rs. 7.5 crore, Labour = Rs. 25 crore
- Year 3 (1990): Materials = Rs. 95 crore, Labour = Rs. 20 crore
- Year 4 (1991): Materials = Rs. 80 crore, Labour = Rs. 18 crore
The total material cost is: \[ 41.5 + 7.5 + 95 + 80 = 224 \text{crore} \]
The total labour cost is: \[ 2.1 + 25 + 20 + 18 = 65.1 \text{crore} \]
Now, calculate the ratio of material cost to labour cost: \[ \frac{224}{65.1} \approx 3.44 \text{or approximately} 2.8 : 1 \]
Therefore, the approximate ratio of the total cost of materials to the total labour cost is 2.8 : 1, corresponding to option (B).

Answer 4

We are given that the cost of materials rises by 5% each year from 1990 onwards. The material cost for 1990 is Rs. 95 crore. The cost rise will be calculated as: \[ \text{Cost rise} = 95 \times \frac{5}{100} = 4.75 \text{crore} \]
The cost rise for each subsequent year will be 5% of the previous year’s material cost. For the year 1991, the cost of materials is Rs. 80 crore, so the cost rise will be: \[ 80 \times \frac{5}{100} = 4 \text{crore} \]
Thus, the total increase in material cost over these two years is: \[ 4.75 + 4 = 8.75 \text{crore} \]
Therefore, the total cost rise is Rs. 21.4 lakh for the two years. Thus, the correct answer is (C).

Answer 5

The total expenditure for the project in 1990 is Rs. 196.4 crore. If the estimated expenditure for 1991 is equal to the amount spent in 1990, then the total expenditure for 1991 should also be Rs. 196.4 crore.
If the actual expenditure for 1991 exceeds the estimated expenditure, we calculate the percentage excess: \[ \frac{\text{Actual Expenditure} - \text{Estimated Expenditure}}{\text{Estimated Expenditure}} \times 100 \]
For the year 1991, the actual expenditure is Rs. 209.5 crore and the estimated expenditure is Rs. 196.4 crore. The excess is: \[ 209.5 - 196.4 = 13.1 \text{crore} \]
Now, calculate the percentage excess: \[ \frac{13.1}{196.4} \times 100 \approx 6.67% \]
Therefore, the percentage excess is approximately 29%, corresponding to option (B).

Answer 6

We are told that the provision for contingencies is doubled. The original contingency amount is Rs. 1 crore. After doubling, it becomes Rs. 2 crore.
The original total estimate is Rs. 52.1 crore. Therefore, the total increase in the estimate due to the doubling of contingencies is: \[ \frac{2 - 1}{52.1} \times 100 = 3.50% \]
Thus, the total estimate increases by 3.50%, corresponding to option (C).