Question

There are five levels (P, Q, R, S, T) in a linear supply chain before a product reaches customers, as shown in the figure.


At each of the levels, the price of the product is increased by 25%. If the product is produced at level $P$ at the cost of Rs. $120$ per unit, what is the paid (in rupees) by the customers?

• A. $292.96$
• B. $187.50$
• C. $234.38$
• D. $366.21$

Answer 1

The correct option is D $366.21$

$\underset{\downarrow }{P}\to Q\to R\to S\to T\to \text{Customer}$
120 at each level increased 25% price paid by customer
$=120\times \frac{125}{100}\times \frac{125}{100}\times \frac{125}{100}\times \frac{125}{100}\times \frac{125}{100}=366.21$