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Question
A manufacturer sells an article to a dealer at a profit of 10%. the dealer sells to the retailer at a profit of 8% and the retailer sells to the customer at a profit of 5%. If the customer pays Rs.12474 for the article, calculate the cost of manufacturing the same.
Solution
S.P. of retailer = Rs.12474
Profit = 5%
`"S.P."/"C.P." = 1 + "Profit"/(100)`
⇒ `(12474)/"C.P." = 1 + (5)/(100)`
⇒ `(12474)/"C.P." = (100 + 5)/(100)`
⇒ C.P. = `(100)/(105) xx 12474`
= Rs.11880
S.P. of dealer = Rs.11880
Profit = 8%
`"S.P."/"C.P." = 1 + "Profit"/(100)`
⇒ `(11880)/"C.P." = 1 + (8)/(100)`
⇒ `(11880)/"C.P." = (100 + 8)/(100)`
⇒ C.P. = `(100)/(105) xx 11880`
= Rs.11000
S.P. of manufacturer = Rs.11000
Profit = 10%
`"S.P."/"C.P." = 1 + "Profit"/(100)`
⇒ `(11000)/"C.P."` = 1 + 10
⇒ `(11000)/"C.P." = (100 + 10)/(100)`
⇒ C.P. = `(100)/(110) xx 11000`
= Rs.10000.
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