A wholesaler marks up the price of a microwave oven by 40% above its cost price. He gives a 20% trade discount to a retailer. The retailer marks up the price by 50% above his purchase price and offers a 20% festival discount to the customer. If the customer finally pays ₹20,160 for the microwave, what is the original cost price of the oven to the wholesaler?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹15,000
Let the CP for wholesaler = x
Wholesaler's MP = 1.40x
Price after 20% trade discount = 1.40x × (80/100) = 1.12x
Retailer's MP = 1.12x × (150/100) = 1.68x
After 20% festival discount = 1.68x × (80/100) = 1.344x
So, 1.344x = 20160
⇒ x = 20160/1.344 = 15000