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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
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B
187.50
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C
234.38
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D
366.21
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Solution

The correct option is D 366.21
PQRSTCustomer
120 at each level increased 25% price paid by customer
=120×125100×125100×125100×125100×125100=366.21

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