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Answer the question on the basis of the following information.

The following is the Wholesale Price Index (WPI) of a select list of items with the base year of 1993-94. In other words, all the item prices are made 100 in that year (1993-94). Price in all other years for an item are measured with respect to its price in the base year. For instance, the price of cement went up by 1% in 1994-95 as compared to 1993-94. Similarly, the price of power went up by 3% in 1996–97 as compared to 1993-94.

 

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-2000

2000-01

2001-02

2002-03

All Items

100

102.0

102.5

104.00

103.00

105.00

106.00

108.00

107.00

106.00

Cement

100

101.0

100.5

103.00

102.50

103.50

103.10

103.80

103.70

104.00

Limestone

100

102.0

102.5

102.75

102.25

103.00

104.00

105.00

104.50

105.00

Power

100

101.5

102.5

103.00

103.50

104.00

106.00

107.00

107.50

108.00

Steel

100

101.5

101.0

103.50

104.00

104.25

105.00

105.50

106.00

105.50

Timber

100

100.5

101.5

102.00

102.50

102.00

103.00

103.50

104.00

104.50

Wages

100

101.5

103.0

103.50

104.00

104.25

104.00

104.75

104.90

105.30

 

Steel manufacturing requires the use of iron ore, power and manpower. The cost of iron ore has followed the All Item index. During $1993-94$ power accounted for $30\%$ of the selling price of steel, iron ore for $25\%,$ and wages for $10\%$ of the selling price of steel. Assuming the cost and price data for cement as given in the previous question, the operating profit $(\%$ of selling price) of an average steel manufacture in $2002-03$

  1. is more than that of a cement manufacturer
  2. is less than that of a cement manufacturer
  3. is the same as that of a cement manufacturer
  4. cannot be determined
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