DIRECTIONS for the following four questions:
A low-cost airline company connects ten India 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.
The company plans to introduce a direct flight between A and J. The market research results indicate that all its existing passengers travelling between A and J will use this direct flight if it is priced 5% below the minimum price that they pay at present. What should the company charge approximately, in rupees, for this direct flight?
From the table we can see that, the lowest price would be from A to H and H to J.
The cost of travel from A to H = Rs 1850
The cost of travel from H to J = Rs 425
Total cost = 1850 + 425 = Rs 2275
Lowest price = Rs 2275
95% of 2275 = Rs 2161
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