Question

A new kitchenware is sold by a manufacturer, who makes a profit of $20\%$. The wholesaler who buys it makes a profit of $25\%$ on selling it to the retailer. Due to heavy competition, the retailer incurs a loss of $5\%$, when he sells each item for $Rs.$ $47.50$. What was the selling price of the manufacturer?

• A. $Rs.$ $32$
• B. $Rs.$ $40$
• C. $Rs.$ $50$
• D. $Rs.$ $48$

Answer 1

The correct option is B $Rs.$ $40$

Let cost of kitchenware is x Rs
Manufacturer, who makes a profit of 20%.
Then selling price to whole seller =100+20=120 Rs
Wholesaler makes profit 25%
Then selling price =$\frac{120\times 125}{100}=150$Rs
The retailer incurs a loss of 5%
Then selling price =$\frac{150\times 95}{100}=142.50$Rswhen he sells each item for Rs. 47.50.
The selling price of the manufacturer=$\frac{47.50\times 120}{142.50}=40$Rs