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

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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