Question
A manufacturer earns a profit of 10% on selling his
products to a wholesale dealer. The wholesale dealer earns a profit of 15% by selling it to a retailer. The retailer, in turn, earns a profit of 25% from the customer. What is the actual cost of production of an article for which the customer pays ₹12,650?Solution
Let the cost price of production of an article = x According to question, 110% of 115% of 125% of x = 12650 On solving equation, 253x /160 = 12650 x = 12650 x 160/253 x = 50 x 160 = Rs. 8000 Hence, the cost price of production of an article = Rs. 8000
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