A manufacturer sells an item to a wholesale dealer at a profit of 11%. The wholesaler sells the same to a retailer at a profit of 15%. The retailer in turn sells it to a customer for ₹17,045, thereby earning a profit of 19%. The cost price of the manufacturer is (consider integral part only):
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹11,220
Cost price of the item when the retailer sells an item to a customer = 100 × 17045/(100+19)
Cost price of the item when the retailer sells an item to a customer = 1704500/119
= 14,323
Selling price for the wholesaler who sells to a retailer = Rs 14,323
Cost Price of an item for wholesaler at a profit of 15% = 100 × 14323/ (100+15)
Cost Price of the item for wholesaler at a profit of 15% = 1432300/115
=12,455
Selling price for the manufacturer who sells to the wholesale dealer = Rs 12,455
Cost price of the item for the manufacturer at a profit of 11% = 100 × 12455/(100+11)
Cost price of the item for the manufacturer at a profit of 11% = 1245500/111
=11,220
∴ The correct answer is Rs 11,220.