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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 total cost of production of item I by Companies A and C together?

ARs. 18.5 crores
BRs. 11.8 crores ✓ Correct
CRs. 8.325 crores
DRs. 9.8 crores
Correct answer: (B) Rs. 11.8 crores
Explanation

The total cost of item I by Companies A and C is Rs. 11.8 crores.

The total production cost across all companies is Rs. 50 crores, so one percent equals half a crore.

Company A holds 15 percent of the cost, split between items I and II in the ratio 2 to 3.

So item I of Company A is 15 times 2 by 5, which gives 3 crores.

Company C holds 22 percent, split 4 to 1, so item I is 22 times 4 by 5, which gives about 8.8 crores.

Adding the two item I costs gives roughly 11.8 crores.

Each company total is first found, then divided by the item ratio to isolate item I.

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