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Question:

The manufacturer of a table sells it to a wholesale dealer at a profit of 10%. The wholesale dealer sells the table to a retailer at a profit of 30%. Finally, the retailer sells it to a customer at a profit of 50%. If the customer pays Rs 4290 for the table, then its manufacturing cost (in Rs) is

Explanation:

Lets the manufacturers C.P. be x

As he sells it to the wholesaler at 10% profit, his S.P will be 1.1x

Now 110 is also the wholesaler’s C.P. Further, as the wholesaler sells it to a retailer at 30%, profit, his S.P will be

$\frac{130}{100}$ × 1.1x = 1.43x

Now 1.43x also the retailers C.P

As the retailer sells it to the customer at

50% profit, S.P. will be $\frac{150}{100}$ × 1.43x or 2.145x

The price paid by the customer is Rs. 4290

⇒ 2.145x = 4290
⇒ x = 2000

So Rs. 2000 is the manufacturer’s cost

Hence, option (c).