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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.

CompanyCost (%)I:IIProfit I (%)Profit II (%)
A152:32520
B113:23235
C224:12022
D83:51525
E275:32830
F51:43525
G121:23024

What is the sum total of the profit earned by Company B on the production of item I and the profit earned by Company A on the production of item II?

ARs. 97.8 lakhs
BRs. 1.956 crores ✓ Correct
CRs. 5.28 crores
DRs. 52.8 lakhs
Correct answer: (B) Rs. 1.956 crores
Explanation

The combined profit is Rs. 1.956 crores.

Company B holds 11 percent of 50 crores, split 3 by 5 for item I, giving 3.3 crores.

Its item I profit at 32 percent is 3.3 crores times 0.32, which is about 1.056 crores.

Company A holds 15 percent, split 3 by 5 for item II, giving 4.5 crores.

Its item II profit at 20 percent is 4.5 crores times 0.20, which is 0.9 crores.

Adding 1.056 crores and 0.9 crores gives 1.956 crores.

Each profit is the item cost multiplied by its own profit percentage.

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