Abdul has introduced a new technology in all his factories. As a result, a worker needs just 1.5 hours to produce a kurta. If raw materials cost and selling cost remain the same, which of the factories listed in the options below will yield the highest profit per kurta?

Profit  = selling price - raw materials cost - selling cost - labor cost 

Hence, raw materials cost = selling price - profit - selling cost - labor cost 

Raw materials cost per Kurta 

for factory 2,    5300-800-45-400*2                      ....(1)

After technology is introduced, a worker takes 1.5 hour to produce a kurta.

Labor cost per Kurta = 1.5 * (Labor cost/ hour)

New Profit          = selling price - raw materials cost - selling cost - new labor cost 

Profit per kurta 

for factory 2       = 5300-(5300-800-45-400*2)-45-400*1.5 = 800 + 400*0.5   =  Original Profit per kurta + 0.5*Labour cost per hour

                                                                                     = 1000

Similarly,

for factory 3,    900+550*0.5 = 1175

for factory 4,    800+450*0.5 = 1025

for factory 5,    600+600*0.5 = 900

for factory 6,    875+400*0.5 = 1075

Factory 3 will yield highest profit.