A wholesaler bought an item from a manufacturer for ₹5,000 and sold it to a retailer at 20% profit. The retailer sold it to a customer at 10% profit. If the customer buys the item from the manufacturer itself, how much money (in ₹)will he save?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 1,600.
Wholesaler’s selling price to retailer = 5000 + 20% of 5000 = 5000 + 1000 = ₹6000
Retailer’s selling price to the customer = 6000 + 10% of 6000 = 6000 + 600 = ₹6600
Savings = 6600 − 5000 = ₹1600