Question

A company sells it goods to a wholesaler making a profit of 10%. The wholesaler in turn sells to retailer making a profit of 20%. A customer buys the good from retailer at Rs 350 and the retailer gains 10%. What is the cost incured by the company to produce the good?

Answer 1

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Let the manufacturing cost is Rs.100. Then the selling cost of the article is 100+18=118 .

The wholesaler purchase the article at Rs.118 and sell it to the retailer at a price of 118+(118×20/100) =118+(118/5)=(590+118)/5=708/5

The retailer purchase it at Rs. 708/5 and sell it to the customer at a price of 

(708/5)+(708×25/100)=(708/5)+(177/5)=(708+177)/5=885/5=177

by the given question,

177 ≡30.09

or, 100≡(30.09/177)×100=17

∴, the cost of the manufacturer is Rs. 17

hope it help you

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