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CAT 1996 Question Paper Question 60
Instructions

Answer the questions based on the following information. Mulayam Software Co., before selling a package to its clients, follows the given schedule.

The number of people employed in each month is:

Question 60

Which five consecutive months have the lowest average cost per man-month under the new technique?

Solution

Lowest cost per person is for coding and maintenance i.e. 10 rs.
But for consecutive five months avg. for coding and any other will be more than consecutive 5 months for maintenance.
So avg. cost for five months of maintenance is = $$\frac{(3+3+1+1+1) \times 10}{9} = 10$$
Which is lowest among all others



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