The total cost of producing item X is equal to the sum of

(2) is not sufficient as we don't know what happened with fixed cost in January. Didi it increase? Decrease? Remained the same? As we have no information about it we can not assume anything. So it's clear C. Below is calculations for C:

Let the total cost in January be \(C_2\) and the total cost before be \(C_1\).


Given: \(C_2=F_2+V_2\) and \(C_1=F_1+V_1\), also \(V_2=0.95V_1\).
Question: \(\frac{C_2}{C_1}=\frac{F_2+V_2}{F_1+V_1}=\frac{F_2+0.95V_1}{F_1+V_1}=?\)

(1) The fixed cost of producing item X increased by 13% in January --> \(F_2=1.13F_1\) --> \(\frac{1.13F_1+0.95V_1}{F_1+V_1}=?\). Not sufficient to get the exact fraction.

(2) Before the changes in January, the fixed cost of producing item X was 5 times the variable cost of producing item X --> \(F_1=5V_1\) --> \(\frac{F_2+0.95V_1}{5V_1+V_1}=?\). Not sufficient.

(1)+(2) \(F_2=1.13F_1\) and \(F_1=5V_1\) --> \(F_2=1.13F_1=5.65V_1\) --> from (2) \(\frac{F_2+0.95V_1}{F_1+V_1}=?\) --> substituting \(F_2\) and \(F_1\)--> \(\frac{5.65V_1+0.95V_1}{5V_1+V_1}=\frac{6.6}{6}=1.1\) --> in January total cost increased by 10%. Sufficient. (Actually no calculations are needed: stem and statement provide us with such relationships of 4 unknowns that 3 of them can be written with help of the 4th one and when we put them in fraction, which we want to calculate, then this last unknown is reduced, leaving us with numerical value).

Answer: C.

Hope it's clear.