Table 72

Directions (1 to 5): Answer the following questions based on the information given below.
The table below shows the comparative costs, in US Dollars, of certain items in USA and a select few Asian countries. The models considered are the most popular ones in the respective countries.

ProductComparative Costs in USA and some Asian countries (in US Dollars)
USAIndiaThailandSingaporeMalaysia
LCD TV2300100011001850900
Home gym190090010001250900
Refrigerator20001100130013001100
Air conditioner2300900120012001000
Washing machine1200300450600300
Music system200085010001300800
Digital camera1600550700900600


The equivalent of one US Dollar in the local currencies is given below.

1 US Dollar equivalent
India40.93Rupees
Malaysia3.51Ringits
Thailand32.90Bahts
Singapore1.53S Dollars


A consulting firm found that the quality of the products was not the same in all the countries above. A poor quality product would result in higher servicing costs over its life time. The cost of poor quality of the products is given in the table

ProductsComparative service cost in USA and Asian countries (in US Dollars)
USAIndiaThailandSingaporeMalaysia
LCD TV0300300200400
Home gym0500400500500
Refrigerator0500500400600
Air Conditioner0700500500800
Washing machine0500600500400
Music system0900600400400
Digital camera0500600500600


Note: For all questions assume that the models considered are the ones for which the prices are mentioned

Q1. A US citizen requires a refrigerator, air conditioner and a music system. He can buy them through an internet portal from any of the given countries without having to pay for any transportation costs. Which country will result in the cheapest overall cost, taking cost of poor quality into account?
1. India
2. Thailand
3. Malaysia
4. Singapore
5. USA

Q2.Taking the cost of poor quality into account, which country/countries will be the most expensive if one has to buy a music system?
1. India
2. Thailand
3. USA
4. Singapore
5. India and Singapore

Q3. Approximately what difference in Bahts will it make to a Thai citizen who is touring India if she were to get a washing machine from India instead of her native country, taking into account the cost of poor quality? One has to pay a duty of 1500 Bahts for transporting the washing machine from India to Thailand.
1. 10000
2. 15000
3. 8000
4. 14000
5. 9500

Q4.The rupee values increases to 35 for a US Dollar, and all other things including quality, remain the same. What is the approximate difference in cost, in US Dollars, between Singapore and India for a digital camera, taking this change into account?
1. 70
2. 350
3. 430
4. 800
5. No difference

Q5. Taking the cost of poor quality into account, which country/countries will be the cheapest if one has to buy a Refrigerator?
1. India
2. Thailand
3. USA
4. Singapore
5. India and Singapore

Answer & Explanation

1.3

        

RefrigeratorMusic systemAir ConditionerTotal
USA2000+02000+02300+06300
India1100+500850+900900+7004950
Thailand1300+5001000+6001200+5005100
Malaysia1100+600800+4001000+8004700
Singapore1300+4001300+4001200+5005100

Required answer is Malaysia.

2.3

Required answer is USA.

3.1

Total Cost of Washing machine in India = 300+500Dollar = 800 dollar
Transportation charge = 1500 Bahts = 1500/32.90 = 45.6 dollar
Total Cost of Washing machine in India = 800+45.6 = 845.6 dollar
Total Cost of Washing machine in Thailand = 450+600Dollar = 1150 dollar
Difference = 1150-845.6 = 304.4 dollar = 10014.7

4.2

Required Difference = 900-550 = 350 dollar

5.1

Required answer is India.

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