Question

If a manufacturer gains 10%, the wholesaler 15%, and the retailer 25%, then what it is the cost of production of an electric toaster whose retail price is Rs 1265?

Answer 1

Retail price = Rs. 1265
Let the manufacturing cost be 'x'
Gain of manufacturer = 10%
S.P to manufacturer = C.P*(100+G)/100 = x*110/100 = 11*x/10

C.P to wholesaler = 11*x/10
Gain = 15%
S.P = 11*x/10 * 115/100 = 11*115*x/1000

C.P to retailer = 11*115*x/1000
Gain = 25%
S.P = 11*115*x/1000 * 125/100 = 11*115*125*x/100000
S.P = Retail price = 1265
1265 = 11*115*125*x/100000
1265 = 11*115*x/800
x = 800 Rs.
Cost of production = Rs. 800
Hope it helps.

Answer 2

Gain of ma manufacture = 10%

Dealer =15%

Retail dealer =25%

Retail price or sp=₹1265 let the product cost be ₹ x

Sp for manufacture=110%of x

= 110/100×x

=110x/100

Sp for dealer =115% of110x/100

Sp for retail dealer=125%of(115/100×110x/100

125/100× 115/100×110/100

therefore about SP for retail dealer=₹1265

Therefore =125/100×115/100×110x/100

=₹1265 is the answer