Discussion

Explanation:

Statement I only gives the comparison of the selling prices. This information alone is not enough to answer the question as the profit also depends on cost.

Statement II only gives the infomation about cost and not selling price.

Hence, the 2 statements alone are not enought to answer the question.

So we also need to analyze both the statements.
Since there is no other constraint on production, we  can solely compare the profitability of two products on the basis of labour.

According to it, if 10 units of labour is available, it can produce 5 units of Q and 2 units of R. So, from 10  units of labour, I can earn (5 x 1) = 5 units of sales revenue from Q and (2 x 4) = 8 units of sales revenue from R.

So by taking both statements together we can determine which would be more profitable.

Hence, 3.

» Your doubt will be displayed only after approval.


Doubts


Feedback

Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.


© 2024 | All Rights Reserved | Apti4All