Question
Download Solution PDFComprehension
The following table shows the details of seven companies (A-G) about
(i) The percentage cost distribution of production of two items I and II,
(ii) Ratio of cost of production between items I and II, and
(iii) Percentage profit earned for the items I and II.
Cost of the production (both items together) by seven companies is Rs. 50 crores.
In accordance with the data in the table, answer the questions:
Company-wise Distribution of Production Cost and Profit
|
Company |
Percentage Cost of Production of Item I and Item II |
Ratio of Production Cost |
Percentage Profit Earned |
||
|
Item I |
Item II |
Item I |
Item 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 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?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDF(1) The cost of the production (both items together) by seven companies is Rs. 50 crores.
(2) Company 'B' on the production of cost item I and item II (ratio) = 3 : 2
(3) Percentage Profit Earned on item I by Company 'B' =
32%
(4) Company 'A' on the production of item I & item II = 15%
(5)Company 'A' on the production of cost item I and item II (ratio) = 2 : 3
(6) Percentage Profit Earned on item II by Company 'A'
= 20%
Formula used:-
(1) Profit % = (Profit × 100)/ Cost Price
Calculation:-
⇒ Company 'B' on the production of item I & item II = 11%
⇒ Total Company 'B' CP = (50 cr × 11)/100 = (11/2)cr
⇒ Company 'B' on the production of cost item I and item II (ratio) = 3 : 2
⇒ Company 'B' on the production of cost item I
⇒ (3 × 11)/(2 × 5)= (33/10 )cr
⇒ Percentage Profit Earned on item I = 32% (Given)
⇒ Company 'B' Percentage Profit Earned on item I
⇒ (33/10 )cr × (32/100) = (1056/1000 )cr
⇒ 1.056 cr ............(1)
Similarly,
⇒ Company 'A' on the production of item I & item II = 15%
⇒ Total Company 'A' CP = (50 cr × 15)/100 = (15/2)cr
⇒ Company 'A' on the production of cost item I and item II (ratio) = 2 : 3
⇒ Company 'A' on the production of cost item II
⇒ (3 × 15)/(2 × 5)= (9/2)cr
⇒ Percentage Profit Earned on item II = 20% (Given)
⇒ Company 'A' Percentage Profit Earned on item II
⇒ (9/2)cr × (20/100) = (9/10)cr
⇒ .9 cr .......(2)
Adding the equation (1) and (2)
⇒ 1.056 cr + .9 cr = 1.956 cr
∴ The required answer is 1.956.
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