CAT 2007 — DILR Question 16
Answer the following question based on the information given below.
A low-cost airline company connects ten Indian cities, A to J. The table below gives the distance between a pair of airports and the corresponding price charged by the company. Travel is permitted only from a departure airport to an arrival airport. The customers do not travel by a route where they have to stop at more than two intermediate airports.
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If the prices include a margin of 10% over the total cost that the company incurs, what is the minimum cost per kilometer that the company incurs in flying from A to J?
Answer & solution
- A
0.77
0.88
- C
0.99
- D
1.06
- E
1.08
The minimum cost per km that the company incurs would correspond to the minimum price per km route.
By observation from the table, minimum price per kilometre is for the route AHJ and is equal to
2275/2350 = 0.97
Minimum cost per kilometre = 0.97/1.1 = 0.88
Hence, option (b).