The following table shows the details of seven companies (A–G) about (i) the percentage cost…
Company D spends 8 percent of Rs 50 crore, that is Rs 4 crore, and with ratio 3 : 5 the cost of item II is \(4 \times \frac{5}{8} = 2.5\) crore. Profit on item II is 25…
Choose your answer
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 ₹50 crores. In accordance with the data in the table, answer the question.
Company-wise Distribution of Production Cost and Profit. What is the amount of profit earned by Company 'D' on item II?
| Company | Percentage Cost of Production of Item I and Item II | Ratio of Production Cost — Item I | Ratio of Production Cost — Item II | Percentage Profit Earned — Item I | Percentage Profit Earned — 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 |
Answer and explanation
Correct answer D
Company D spends 8 percent of Rs 50 crore, that is Rs 4 crore, and with ratio 3 : 5 the cost of item II is crore. Profit on item II is 25 percent, so crore. That equals Rs 62.5 lakhs.
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