Select the correct answerA manufacturer sells a pencil box to a wholesale dealer at a profit of 20%. The wholesaler sells the same to a retailer at 15% profit. The retailer in turn sells it to a customer for Rs. 32.43 thereby earning a profit of 17.5%. Find the manufacturer’s cost price.radio_button_unchecked Rs. 24radio_button_unchecked Rs. 22.5radio_button_unchecked Rs. 20radio_button_unchecked Rs. 16
Question
Select the correct answerA manufacturer sells a pencil box to a wholesale dealer at a profit of 20%. The wholesaler sells the same to a retailer at 15% profit. The retailer in turn sells it to a customer for Rs. 32.43 thereby earning a profit of 17.5%. Find the manufacturer’s cost price.radio_button_unchecked Rs. 24radio_button_unchecked Rs. 22.5radio_button_unchecked Rs. 20radio_button_unchecked Rs. 16
Solution
Let's solve this step by step:
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The customer buys the pencil box for Rs. 32.43, this price includes a profit of 17.5% for the retailer. So, to find the cost price for the retailer, we need to calculate 100% of the cost. If 117.5% is Rs. 32.43, then 100% (which is the cost price for the retailer) is (32.43 * 100) / 117.5 = Rs. 27.6 approximately.
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Now, this Rs. 27.6 is the price at which the wholesaler sold the pencil box to the retailer, including his profit of 15%. So, to find the cost price for the wholesaler, we calculate 100% of the cost. If 115% is Rs. 27.6, then 100% (which is the cost price for the wholesaler) is (27.6 * 100) / 115 = Rs. 24 approximately.
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Finally, this Rs. 24 is the price at which the manufacturer sold the pencil box to the wholesaler, including his profit of 20%. So, to find the cost price for the manufacturer, we calculate 100% of the cost. If 120% is Rs. 24, then 100% (which is the cost price for the manufacturer) is (24 * 100) / 120 = Rs. 20.
So, the manufacturer's cost price is Rs. 20. Therefore, the correct answer is Rs. 20.
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