Question

The manufacturer $A$ of a certain item sells it to a wholesaler at a profit of $30\%$ on his manufacturing cost. The wholesaler sells it to a retailer at a profit of $25\%$ and the retailer sells it to a consumer at a profit of $20\%$. The price paid by the consumer over and above manufacturing cost will be

• A. $65\%$
• B. $95\%$
• C. $85\%$
• D. $90\%$

Answer 1

The correct option is B $95\%$

Let the manufacturing cost $=x$

S.P of manufacturer ${}^{\prime }{A}^{\prime }=x(1+\frac{30}{100})=\frac{13x}{10}$

S.P of ${}^{\prime }{A}^{\prime }=C.P$ of whole seller-

$\therefore$ C.P of whole seller $=\frac{13x}{10}$.

S.P of whole seller $=\frac{13x}{10}(1+\frac{25}{100})$

$=\frac{13x}{10}\times \frac{5}{4}$

$=\frac{13x}{8}$

S.P of whole seller $=$ C.P of Retailer $=\frac{13x}{8}$

S.P of Retailer $=\frac{13x}{8}(1+\frac{20}{100})$

$=\frac{13x}{8}\times \frac{6}{5}$

$=\frac{39x}{20}$

$\therefore$ C.P of consumer $=\frac{39x}{20}$.

Price paid by consumer over manufacturing cost $=\frac{39x}{20}-x=\frac{19x}{20}$

$\therefore$ % of price paid over manufacturing cost $=\frac{\frac{19x}{20}}{x}\times 100$% $=95$%