Study the paragraph below and answer the questions that follow:
Abdul has 8 factories, with different capacities, producing boutique kurtas. In the production process, he incurs raw material cost, selling cost (for packaging and transportation) and labour cost. These costs per kurta vary across factories. In all these factories, a worker takes 2 hours to produce a kurta. Profit per kurta is calculated by deducting raw material cost, selling cost and labour cost from the selling price (Profit = selling price - raw materials cost - selling cost - labour cost). Any other cost can be ignored.
Exhibit: Business Details of Abdul's 8 Factories
1. Which of the following options is in decreasing order of raw materials cost?
- Factory 3, Factory 4, Factory 7, Factory 5
- Factory 4, Factory 3, Factory 2, Factory 5
- Factory 6, Factory 3, Factory 5, Factory 7
- Factory 6, Factory 8, Factory 7, Factory 2
- Factory 8, Factory 3, Factory 2, Factory 4
2. Which of the factories listed in the options below has the lowest sales margin (sales margin = profit per kurta divided by selling price per kurta)?
- Factory 2
- Factory 4
- Factory 5
- Factory 6
- Factory 7