A manufacturer sells a radio to a retailer at a profit of 10%. The retailer sells it to a customer for Rs. 891 and there by makes a profit of 8%. Find the manufacturers cost price of the radio.

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Solution

Retailer S.P $= 891$ Rs.
Profit $= 8$
$R e t a i l e r C . P = \frac{100}{108} \times 891 = 825 R s .$
Retailer C.P=manufacturer S.P $= 825$ Rs.
Profit $= 10$
$M a n u f a c t u r e r C . P . = \frac{100}{110} \times 825 = 750 R s .$

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