CAT 1998 — QA Question 36
Answer the next 2 questions based on the following information.
A company purchases components A and B from Germany and USA respectively. A and B form 30% and 50% of the total production cost. Current gain is 20%. Due to change in the international scenario, cost of the German mark increased by 30% and that of USA dollar increased by 22%. Due to market conditions, the selling price cannot be increased beyond 10%.
Direction: Each question is followed by two statements, I and II. Answer the questions based on the statements and mark the answer as
1. if the question can be answered with the help of any one statement alone but not by the other statement.
2. if the question can be answered with the help of either of the statements taken individually.
3. if the question can be answered with the help of both statements together.
4. if the question cannot be answered even with the help of both statements together.
What is the price of tea?
I. Price of coffee is Rs. 5 more than that of tea.
II. Price of coffee is Rs. 5 less than the price of a cold drink which cost three times the price of tea.
Answer & solution
Answer: 3
From the statement II, we can frame the equation that:
(Cold drink) = 3(Tea) and (Coffee) = (Cold drink) – 5 = 3(Tea) – 5. So we have one equation in terms of prices of tea and coffee. Although, this alone may not be sufficient to answer the question, in the light of the equation provided by the first statement, viz. (Coffee) = (Tea) + 5, we can solve the two equations simultaneously and get the price of tea.