Aptitude Question:
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The total expense of a boarding house are partly fixed and partly variable with the number of boarders. The charge is Rs.70 per head when there are 25 boarders and Rs.60 when there are 50 boarders. Find the charge per head when there are 100 boarders.
a) 65
b) 55
c) 50
d) 45

Answer:

let total cost be c= a + nk

where a = fixed cost and

k = variable cost and n = number of boarders

total cost when 25 boarders c = 25*70 = 1750 i.e. 1750 = a + 25k

total cost when 50 boarders c = 50*60 = 3000 i.e. 3000 = a + 50k

solving above 2 eqns, 3000-1750 = 25k i.e. 1250 = 25k i.e. k = 50

therefore, substituting this value of k in either of above 2 eqns we get

a = 500 (a = 3000-50*50 = 500 or a = 1750 - 25*50 = 500)

so total cost when 100 boarders = c = a + 100k = 500 + 100*50 = 5500

so cost per head = 5500/100 = 55

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