Question

Two companies A and B quote for a tender. On the tender opening day, A realises that the two quotes are in the ratio 7 : 4 and hence decreases its price during negotiations to make it Rs.1 lakh lower than B's quoted price. B then realises that the final quotes of the two were in the ratio 3 : 4. By how much did A decrease its price in order to win the bid?

• A. Rs.7 Lakhs
• B. Rs.4 lakhs
• C. Rs.9 lakhs
• D. None of these

Answer 1

The Correct Option is B

Let the quotes of A and B be \(7x\) and \(4x\)

According to the question,

\(=\frac{4x-1}{4x}=\frac{3}{4}\)

\(=4x-1=3x\) (or) \(x=1\) Lakh

Amount decreased by A in price to win the bid is given by,

\(=7x-(4x-1)\)

\(=3x+1=4\) Lakh

Hence, option B is the correct answer.The correct option is (B): Rs.4 lakhs