Airline Company

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(CAT 2007)

A low-cost airline company connects ten Indian cities, A to J. The table below gives the distance between a pair of airports and the corresponding price charged by the company. Travel is permitted only from a departure airport to an arrival airport. The customers do not travel by a route where they have to stop at more than two intermediate airports.





1. What is the lowest price, in rupees, a passenger has to pay for travelling by the shortest route from A to J?
a. 2275
b. 2850
c. 2890
d. 2930
e. 3340

2. The company plans to introduce a direct flight between A and J. The market research results indicate that all its existing passengers travelling between A and J will use this direct flight if it is priced 5% below the minimum price that they pay at present. What should the company charge approximately, in rupees, for this direct flight?
a. 1991
b. 2161
c. 2707
d. 2745
e. 2783

3. If the airports C, D and H are closed down owing to security reasons, then what would be the minimum price, in rupees, to be paid by a passenger travelling from A to J?
a. 2275
b. 2615
c. 2850
d. 2945
e. 3190

4. If the prices include a margin of 10% over the total cost that the company incurs, then what is the minimum cost per kilometer that the company incurs in flying from A to J?
a. 0.77
b. 0.88
c. 0.99
d. 1.06
e. 1.08

5. If the prices include a margin of 15% over the total cost that the company incurs, then which among the following is the distance to be covered in flying from A to J that minimizes the total cost per kilometer for the company?
a. 2170
b. 2180
c. 2315
d. 2350

e. 2390

For answers click here.

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