Directions of questions 17 to 20: Go through the table given blow and solve the questions based on it.

The table given below gives the unit cost of transportation of material of three products A, B and C produced by ABC Ltd to five depots D1, D2, D3, D4 and D5. The production figures of the three products A, B and C are 240 units, 1200 units and 840 units respectively.

Product

Transportation cost per unit (Rs.)

D1

D2

D3

D4

D5

A

15

16

24

20

10

B

30

32

30

28

40

C

18

15

20

16

11

Which of the following would involve the least cost?

Option 1 -

Transporting 300 units of B to D4

Option 2 -

Transporting 200 units of B to D41

Option 3 -

Transporting 300 units of C to D2

Option 4 -

Transporting 400 units of C to D5

1 View | Posted 3 months ago

Asked by Shiksha User

1 Answer

Answered by

Vishal Baghel | Contributor-Level 10

3 months ago

Correct Option - 4

Detailed Solution:

(d)

The cost of transportation for each options are:

(a) 300 * 28 = Rs. 8400

(b) 200 * 30 = Rs. 6000

(d) 400 * 11 = Rs. 4400

Obviously, the cost of transportation of option (d) is the least.

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