Question

An oil refinery takes 100 litres of crude oil as input and after refining for 1 hour gives certain amount of output oil X litres. This can besold in the market at a profit of Rs 30 per litre. If this oil is further refined for hour it gives oil Y litres. This can be sold at a profit ofRs. 50 per litre. Output and input ratio at both the stages is 90%. The maximum amount that can be earned from 1000 litres of crudeinput is

• A. Rs. 30,000
• B. Rs. 27,000
• C. Rs. 40,000
• D. Rs. 40,500

Answer 1

Answer: (D)

Rs. 40,500

Answer 2

For Case 1:
Input will be = 1000L
Output will be = 1000 ×.9 = 900L
Profit will be = 900 × 30 = 27000
For Case 2:
Input will be = 900L
Output will be = 900 × .9 = 810L
Profit will be = 810 × 50 = 40500 rupees
So in case 2 maximum profit can be produced.
The correct option is (D)