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Question

If the manufacturer gains 10%, the wholesale dealer 15%, and the retailer 25% then what is the production cost of a washing machine whose retail price is Rs.37950?

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Solution

Let the CP of the machine be x

If the manufacturer gains 10%, then

SP for the manufacturer =(100%+10%) of x=110%x

If the wholesaler gains 15%, then

SP for the wholesaler =(100%+15%) of 110%x=115%×110%x

If the retailer gains 25%, then

SP for the retailer =(100%+25%) of (115%×110%x)=125%×115%×110%x

According to the question,

125%×115%×110%x=37950

125100×115100×110100×x=37950

x=37950×100000125×115×110

x=24000


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