Question

The MRP of a article is 60% above its manufacturing cost. The article is sold through a retailer, who earns 19% profit on his purchase price. What is the approx profit percentage for the manufacturer who sells his article to the retailer? The retailer gives 15% discount on MRP.

(a) 15.2%

(b) 14.2%

(c) 13%

(d) 12.5%​

Answer 1

Answer:

The correct option is B.

Manufacturer profit = 14.2%

Step-by-step explanation:

Given:

• The MRP of a article is 60% above its manufacturing cost.

• The article is sold through a retailer, who earns 19% profit on his purchase price.

• The retailer gives 15% discount on MRP.

To Find out:

The approx. profit percentage for the manufacturer who sells his article to the retailer.

Solution:

The manufacturer sells the product to retailer, and then retailer sells to the customer.

 

Assume manufacturing cost = 100 and manufacturer profit = x

 

As Maximum Retail Price (MRP) of a product is 60% above its manufacturing cost,

 

$\rm MRP = 160\% \: of \: 100 = 160$

The retailer gives 15% discount on MRP. So, customer price is 85% of MRP.

 

$\rm Buyer \: Price = 85 \% \: of \: 160 = 136$

Manufacturer makes x rupees profit, and then retailer makes 19% profit.

So,

$\implies \rm{119\% \: of \: (100 + x) = 136} \\ \\ \implies \rm{119(100 + x) = 13600} \: \: \: \: \: \\ \\ \implies \rm{(100 + x) = 114.28} \: \: \: \: \: \: \: \: \: \: \\ \\ \implies \rm{x = \bf14.28} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

Hence, Manufacturers profit is 14.2%.

The correct option is B.

Answer 2

Answer:

Correct Option is B.

Step-by-step explanation:

14.2% is answer.