Question

What is the ratio of the cost of production of item I by company A to the cost of production of item I by company D?

• A. 3:5
• B. 1:2
• C. 2:1
• D. 2:3
  % Correct answer \textbf{Correct answer:} (C) 2:1

Hint:

Use the item ratio to split total cost and compare values for the same item across companies.

Answer 1

The Correct Option is C

A’s share = 15% of 25 = 3.75 crore
Item I ratio = 2:3 ⇒ A’s item I = \(\frac{2}{5} \times 3.75 = 1.5\) crore
D’s share = 8% of 25 = 2 crore
Item I ratio = 3:5 ⇒ D’s item I = \(\frac{3}{8} \times 2 = 0.75\) crore
Ratio = \(1.5 : 0.75 = {2:1}\)