Direction: Rang Barsey Paint Company (RBPC) is in the business of manufacturing paints. RBPC buys RED, YELLOW, WHITE, ORANGE, and PINK paints. ORANGE paint can also be produced be mixing RED and YELLOW paints in equal proportions. Similarly, PINK paints can also be produced by mixing equal amounts of RED and WHITE paints. Among other paints, RBPC sells CREAM paint, ( formed by mixing WHITE and YELLOW in the ratio 70:30 ) AVOCADO paints ( formed by mixing equal amount of ORANGE and PINK paint) and WASHED ORANGE paint ( formed by mixing equal amount of ORANGE and WHITE paint). The following table provides the prices at which RBPC buys paints.
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Assume the AVOCADO, CREAM, and WASHED ORANGE each sells for the same price. Which of the three is the most profitable to manufacture?
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- AVOCADO.
- CREAM.
- WASHED ORANGE.
- Sufficient data is not available.
- AVOCADO.
Correct Option: B
On the basis of given question ,
We already calculate Cheapest Price of Avocado 19.5/litre.
Cream-white : Yellow ( 7 : 3 ) = ( 7 x 15 + 3 x 25 ) / 10 = 18 /litre
Washed Orange ( 1 : 1 ) = ( 22 x 1 + 15 x 1 ) / 2 = 18.5
