Multiple choice

Passage

Directions : Read the following passage and answer the question. A company manufactures two types of engines - 'CEM' and 'LVM'. Engine 'CEM' is made of three components a, b and c and engine 'LVM' is made of two components p and q. The three components (a, b and c) of engine 'CEM' are imported from the US, Japan and Russia, respectively. All the three components of engine 'CEM' respectively account for 2X%, X% and (4X + 5)% of the total production cost of engine 'CEM'. Two components (p and q) of engine 'LVM' are imported from China and Brazil, respectively. Components 'p' and 'q' respectively account for Y% and (Y + 10)% of the total production cost of engine 'LVM'. The total cost of all the three components (a, b and c) of engine 'CEM' is Rs. 32,000 and the total cost of two components (p and q) of engine 'LVM' is Rs. 27,000. The total cost of production of engine 'CEM' and engine 'LVM' is Rs. 80,000 and Rs. 90,000, respectively.

If the company wants to earn 20% profit on engine 'CEM', then which of the following sets of successive discounts should be offered so that the marked price is highest? (i) 10% and 20% (ii) 25% and 5% (iii) 15% and 15%

  1. Only (i)

  2. Only (ii)

  3. Only (iii)

  4. Both (i) and (ii) are equal.

  5. All three are equal.
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B Correct answer

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