A manufacturer sells an article to a wholesaler at a profit of 18%, the wholesaler sells it to a retailers
a profit of 20%. The retailer sells it to a customer at a profit of 25%. If the customer pays 30.09 for
find the cost of the manufacturer
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Answer:
Let cost of manufacturer = Rs.100
Selling price of manufacurer to whole-saler = 100 + 18 = Rs.118
Selling price of whole-saler to retailer = 118 + [ 118 × (20/100) ] = Rs. 141.60
Selling price of retailer to customer = Rs. 141.60 + [ 141.60×(25/100) ] = Rs. 177
Hence from manufacurer to customer, the increase in cost 77%
If buying price of customer is Rs. 30.09, then cost of manufacturer = 30.09×(100/177) = Rs.17
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