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.

Product Comparative Costs in USA and some Asian countries (in US Dollars)
USA India Thailand Singapore Malaysia
LCD TV 2300 1000 1100 1850 900
Home gym 1900 900 1000 1250 900
Refrigerator 2000 1100 1300 1300 1100
Air conditioner 2300 900 1200 1200 1000
Washing machine 1200 300 450 600 300
Music system 2000 850 1000 1300 800
Digital camera 1600 550 700 900 600


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

1 US Dollar equivalent
India 40.93 Rupees
Malaysia 3.51 Ringits
Thailand 32.90 Bahts
Singapore 1.53 S 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

Products Comparative service cost in USA and Asian countries (in US Dollars)
USA India Thailand Singapore Malaysia
LCD TV 0 300 300 200 400
Home gym 0 500 400 500 500
Refrigerator 0 500 500 400 600
Air Conditioner 0 700 500 500 800
Washing machine 0 500 600 500 400
Music system 0 900 600 400 400
Digital camera 0 500 600 500 600


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

        

Refrigerator Music system Air Conditioner Total
USA 2000+0 2000+0 2300+0 6300
India 1100+500 850+900 900+700 4950
Thailand 1300+500 1000+600 1200+500 5100
Malaysia 1100+600 800+400 1000+800 4700
Singapore 1300+400 1300+400 1200+500 5100

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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