A manufacturer sells his product at 10% profit to the distributor and the distributor sells it to the customer at 5% profit. If the cost price to the customer is Rs.11,500, determine the profit (in Rs.) (neglect the fraction) earned by the manufacturer
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Correct answer: D
Explanation
The correct answer is option 4 i.e. 995
Let the cost price of the goods for the manufacturer be x Rs
Given that
The selling price of goods for the manufacturer = 11500 Rs
The profits gained by the manufacturer are 10% and 5%
Hence, the Price customer has to pay = x × (110/100) × (105/100) = 231x/200
According to the question
The customer has to pay 11500 Rs
Thus, 231x/200 = 11500
x = (11500 × 200)/231 = 995