Question 72

Two companies A and B quote for a tender. On the tender opening day, A realises that the two quotes are in the ratio 7 : 4 and hence decreases its price during negotiations to make it Rs.1 lakh lower than B's quoted price. B then realises that the final quotes of the two were in the ratio 3 : 4. By how much did A decrease its price in order to win the bid?

Solution

Let the quotes of A and B be $$7x$$ and $$4x$$

According to the question,

= $$\frac{4x - 1}{4x} = \frac{3}{4}$$

= $$4x - 1 = 3x$$ (or) $$x = 1$$ Lakh

Amount decreased by A in price to win the bid is given by,

= $$7x - (4x - 1)$$

= $$3x + 1 = 4$$ Lakh

Hence, option B is the correct answer.

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