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Q: If the production of each of A, B, C and D increases by 10% in 2008 and the overall increase in production of all the vehicles is 15%, then what is the net increase in the production of vehicles of type E?
A. 40,000 B. 35,000
C. 30,000 D. 25,000
E. Cannot be determined

Answer and Explanation

Answer:40,000

Explanation:
Total number of all the vehicles produced in 2008 = (100 +15/100) x (total number of all the vehicles produced in 2007) = 1.15 x 450 = 517.5 thousand
Production of vehicles A, B, C and D in 2008 = 275(1.1) = 302.5
For the total no of all the vehicles to be 517.5 thousand, number of vehicles of type E which are produced in 2008 = 517.5 – 302.5 = 215 thousand.
Increase over the previous year = 215 – 175 = 40 thousand.

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