Question

Statements
The cost of manufacturing cars in state A is 30% 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 B 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 30% 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 30% of the production cost of cars in state B

Answer 1

The correct option is A The cost of transportation from state A to state C is more than 30% of the production cost


The cost of transportation from state A to state C is more than 30% of the production cost can be directly drawn from the statement.