A wholesaler sells a packet of tea to a retailer at a…

A wholesaler sells a packet of tea to a retailer at a profit of 20%. The retailer then marks up the price by 50% and offers a discount of 20% to the customer. If the customer pays ₹480, find the cost price of the packet for the wholesaler.

Show answer & explanation

Correct answer: C

Explanation

The correct answer is option 3 i.e. ₹333.33.

Let wholesaler cost price = x

Wholesaler sells to retailer at 20% profit:

Retailer buying price = 120% of x = $6x\over5$

Retailer marks up by 50%:

Marked price = ( $6x\over5$ ) × $3\over2$ = $9x\over5$

Gives 20% discount:

Selling price to customer = 80% of $9x\over5$ = ( $9x\over5$ ) × $4\over5$ = $36x\over25$

⇒ $36x\over25$ = 480

⇒ x = 480 × $25\over36$

⇒ x = 40 × $25\over3$

⇒ x = $1000\over3$ = 333.33

Cost price for wholesaler = ₹333.33

SSC CGL 2025 PYQ — Question 63