For seven companies A–G: percent of total production cost, I:II production cost ratio, and profit % on items I and II. Total production cost = Rs 50 crore.
| Company | Cost (%) | I:II | Profit I (%) | Profit II (%) |
|---|---|---|---|---|
| A | 15 | 2:3 | 25 | 20 |
| B | 11 | 3:2 | 32 | 35 |
| C | 22 | 4:1 | 20 | 22 |
| D | 8 | 3:5 | 15 | 25 |
| E | 27 | 5:3 | 28 | 30 |
| F | 5 | 1:4 | 35 | 25 |
| G | 12 | 1:2 | 30 | 24 |
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?
A3:5
B1:2
C2:1 ✓ Correct
D2:3
Correct answer: (C) 2:1
Explanation
The ratio of item I cost of Company A to Company D is 2 to 1.
Company A item I cost is 15 percent of 50 crores split 2 by 5, giving 3 crores.
Company D item I cost is 8 percent of 50 crores split 3 by 8, giving 1.5 crores.
The ratio 3 crores to 1.5 crores simplifies to 2 to 1.
Each item I cost comes from the company share times the item I fraction.
Dividing both by 1.5 gives the simplest whole number ratio.
Correct reading of each company ratio is the key to accuracy.
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