Abdul has introduced a new technology in all his factories. As a result, a worker needs just 1.5 hours to produce a kurta. If raw materials cost and selling cost remain the same, which of the factories listed in the options below will yield the highest profit per kurta?
Explanation:
Here, a worker takes 1.5 hours to produce a kurta.
Hence for factory 2 new labour cost would be 1.5 × 400 = 600 instead of 2 × 400 = 800
⇒ Profit of factory 2 will increase by 0.5 × 400 = 200.
New profit for factory 2 = 500 + 200 = 700.
Similarly, we can make the following table for new profit of each of the companies mentioned in the options.
Thus, the maximum profit is obtained from Factory 3.
Hence, option (b).
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