Question
A manufacturer sells an article to a wholesaler at a
profit of 20%. The wholesaler sells it to a retailer at a profit of 25%, and the retailer sells it to a customer at a profit of 30%. If the customer pays rupees 975 for the article, what was the cost price for the retailer?Solution
Let the cost price for the manufacturer be 100x Selling price for the manufacturer = 100x × 1.2 = 120x Selling price for the wholesaler = 120x × 1.25 = 150x Selling price for the retailer = 1.5x × 1.3 = 195x Given 195x = 975 x = 5 cost price for the retailer = Selling price for the wholesaler = 150x = 750
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