Comprehension

Directions for Questions: Study the information below and answer questions based on it.

Rang Barsey paint Company (RBPC) is in the business of manufacturing paints, RBPC buys Red, Yellow, White, Orange and Pink paints. Orange paint can be also produced by mixing Red and Yellow paints in equal proportions. Similarly, Pink paint can also be produced by mixing equal amounts of Red and White paints. Among other paints , RBPC sells Cream paint, (formed by mixing White and Yellow in the ratio 70:30) Avocado paint (formed by mixing equal amounts of Orange and Pink paint ) and Washedorange paint (formed by mixing equal amounts of Orange and White paint.) The following table provides the price at which RBPC buys paints .

CAT/2003

Question . 189

Assume that Avocado, Cream and Washedorange each sells for the same price . Which of the three is the most profitable to manufacture?