question_answer

'Drink Up' and 'Sweet Drink' are two competing companies manufacturing aerated drinks. During the past financial year, Drink Up was able to produce 1,00,000 bottles at the cost of Rs. 5,65,000 and Sweet Drink was able to produce      bottles at a cost of Rs. 3,54,375. Which company is more efficient?

Answer:

Cost per bottle of Drink Up \[=\frac{5,65,00}{1,00,000}=Rs\,5.65\] Cost per bottle of Sweet Drink \[=\frac{3,54,375}{67,500}=Rs.\,5.25\] Since, cost per unit of Sweet Drink is less, therefore it is more efficient.