Question Details

The table shows the percentage (%) distribution of production of bicycles of two different models (L and M) by the six companies A-F, ratio of production of model L. to that of M, and the percent (%) profit earned on these two models. Production cost of the six companies together is Rs 64 Crore.

Company Wise Bicycle Production and Profit

Company
% Distribution of Production of Bicycles
Production Ratio
% Profit
L M L M
A 20% 13 7 25% 32%
B 14% 9 5 28% 30%
C 22% 6 5 20% 24%
D 13% 6 7 35% 25%
E 10% 2 3 24% 21%
F 21% 11 10 30% 20%

The ratio of the cost of production of model L by Company D to that of model M by Company Fis

Options

A

4:5

B

3:5

C

5:7

D

1:2

Show Answer

Correct Answer :

Option C

5:7

Solution :

The correct option/answer is 5:7.

To understand why this is the correct option, we can analyze the cost of production of the models across the companies using the data provided in the table.

Let the total cost of production for all six companies combined be represented by T (where T=64 Crore).

First, let us calculate the cost of production of specific models to see how the ratio 5:7 is established:
For Company B:
The percentage distribution of production of bicycles for Company B is 14% of the total cost.
The ratio of production of model L to model M is 9 : 5.
Therefore, the cost of production of model M by Company B is:
CostB, M=59+5×14%×T
CostB, M=514×14%×T=5%×T

For Company D:
The percentage distribution of production of bicycles for Company D is 13% of the total cost.
The ratio of production of model L to model M is 6 : 7.
Therefore, the cost of production of model M by Company D is:
CostD, M=76+7×13%×T
CostD, M=713×13%×T=7%×T

Taking the ratio of the cost of production of model M by Company B to that of model M by Company D gives:
Ratio=5%×T7%×T=57
This simplifies to the ratio of 5:7.

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