Assume that DREAM PINK, CREAM, and ORANGE LAIT has the same Selling Price(SP). W

Question

Assume that DREAM PINK, CREAM, and ORANGE LAIT has the same Selling Price(SP). Which of the three is the most profitable to manufacture?

Options:

A . DREAM PINK.

B . CREAM.

C . ORANGE LAIT.

D . Data Insufficient

Answer: Option B
:
B
To Manufacture 1 litre of each paint minimum cost is:

\begin{matrix} P a i n t & M o n e y D r e a m P i n k & 11 + 9 = 20 C r e a m & 15 \times 0.7 + 25 \times 3 = 18 O R A N G E L A I T & 11 + 7.5 = 18.5 \end{matrix}

Thus, the minimum cost of cream will yield the maximum profit.

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