(Ratio) here I am confuse with what does 5:12 actually means ?

Question

I am confuse with this , Suppose one pencil cost 10 and erase cost 2 , according to ratio and proportion it mean 10:2 = 5:1 it mean pencil is 5 times the cost of erase

how does this concept is related to the below question

A company “A” sells a 53cm model T.V. at the price of Rs.7000 whereas another company “B” sells the same model at a price of Rs.16,800. What is the ratio of their respective prices?

Solution: A : B where A = 7000 ; B = 16800 5: 12

Answer 1

$${A\over B}={7000\over16800}={5\over12}=0.4167$$

It means that A is 0.4167 times the cost of B which is of course less than B.

or you can say B is $\frac{12}{5}=2.4$ times the cost of A which is, of course, greater than the cost of A.

It means that company B is selling the same T.V. at a price 2.4 times than the price of company A.

Answer 2

The question is simply asking you to compare the prices of the companies (usually, expressed in simplest form).

Here, we have the ratio $$A:B=70:168=5:12=1:2.4,$$ that is, company B sells at $2.4$ of the price at which company A sells.