CAT 2007 Question 50

Instructions

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.

Question 50

If the 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 A to J that minimizes the total cost of travel for the company?

Solution

Even if If the prices include a margin of 15% over the total cost that the company incurs, the total cost company incurs would be minimum for route AHJ i.e 2350 km. Hence option D. 


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