Question

Statement : The cost of manufacturing cars in state A is thirty per cent less than the cost of manufacturing cars in state B. Even after transportation fee for the differential distances between states A and B and the interstate taxes, it is cheaper to manufacture cars in state 13 than state A for, selling these cars in State C.
Which of the following supports the conclusion drawn in the above statement?

• A. The cost of transportation from state A to state C is more than thirty per cent of the production cost.
• B. The production costs of cars in state B are lower in comparison to state A.
• C. Only entry tax at state C is more for the products originated in state A.
• D. Entry tax at state C is more for the products originated in state B.
• E. The total of transportation cost of cars from state B to state C and entry tax of cars at state C is less than thirty percent of the production cost of cars in state B.
  

Answer 1

The correct option is E The total of transportation cost of cars from state B to state C and entry tax of cars at state C is less than thirty percent of the production cost of cars in state B.


Data given is conclusion (e) is in favour of findings given in the statement.