Question

If the ticket prices include a margin of 15% over the total cost that the company incurs, which among the following is the distance to be covered in flying from Chennai to Manipal that minimises the total cost per kilometre for the company?

• A. 2170
• B. 2180
• C. 2315
• D. 2350
• E. 2390

Answer 1

The correct option is D 2350

cost incurred per kilometre is:

a) 2930/(1.15 * 2170) = 1.35/1.15

b) 3340/(1.15 * 2180) = 1.53/1.15

c) 2850/(1.15 * 2315) = 1.23/1.15

d) 2275/(1.15 * 2350) = 0.96/1.15

Hence option (d)