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

solution given in PM is correct.. What are your issues in that..?

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

i feel ans of pratice mannual is correct..

Maithili first understand the question.. what actually is asked.. ques specifically says that C aapni cost kitne se kam kare jisse usse II par bhi business mil jaye.. ques is not asking u to solve again full problem..

regarding that cost of 3.. If u look at row 3.. There only 8 units can be allocated.. At present units are allocated at 4 n 5.. But ques says that allocation is desired at II whose cost is 6.. So in order to do allocation at II, we have to reduce cost by 3.. B'coz we have to keep our cost lowest in that row.. As if we reduce our cost by 2, then our cost will be 4..