Question

If the manufacturer gains $10\%$, the wholesale dealer $15\%$ and the retailer $25\%$, then find the cost of production of a table if the retail price was Rs. 1265.

• A. Rs. 920
• B. Rs. 842
• C. Rs. 800
• D. Rs. 760

Answer 1

The correct option is C

Rs. 800

Let the cost of production be Rs. P.

As per question,

$\Rightarrow$ $\frac{125}{100}\times \frac{115}{100}\times \frac{110}{100}\times P=Rs.1265$

$\Rightarrow$ $\frac{253P}{160}=Rs.1265$

$\Rightarrow$ P = Rs. 800