Error ? in ca-final o.r.practice manual pg 11.35 and 11.39

Hi Ankit ,

I hav Doubt w.r.t Q.9, part (iii) given on Pg.11.36 of O.R. Practice Manual (2014 edition)

Plz tell me 

1) Is the Ans. & Explanation given in Practice Manual Pg 11.39 for part Q.9 (iii) correct ?

          A) Yes  

  or      B) No 

2) Also , if possible (if u find time) , kindly let me know as to how the ans. was derived ?

   i mean , was the Answer (i.e. Allocation), derived by

  A)  Re-doing the Entire VAM Operations again by taking p.u.Cost from Riute'C' to Market 'II' as Rs.3 p.u.

or B) Any other method

Kindly Reply

Regarding Part (iii) of Q.9 when i solved the sum by substituting the Cost of

Warehouse 'C' to Market 'II' as Rs. 3 p.u.

and thereafter performing VAM Operation from the begining , i got a different answer from that given in the Practice manual.

i.e. if we perform VAM Operation from the begining by taking p.u. cost as Rs.3

then No allocation is made for >> 'C' to 'II' bcoz the cost p.u. of 'A' to 'II' is Rs.2 (which is  Lesser than Cost of Rs.3)

So entire allocation will be made to 'A' only again

So , i feel the Answer should have been that 'C' must reduce its cost p.u. to Rs.2   for Market 'II' so that it will get Allocation 

(This is what is given in PadhukaTextBook (Q.4 Pg.17.9 of Nov,12 Edition)

Plz reply which is right 

A)Rs.3

or B)Rs.2