Question

If the manufacturer gains 10%, the wholesale dealer gains 15% and the retailer gains 25%, then find the cost of production of a table, if the retails price of which is ₹1265?

• A. ₹1000
• B. ₹900
• C. ₹800
• D. ₹700

Answer 1

The Correct Option is C

To find the cost of production of a table given the manufacturer's gain, wholesale dealer's gain, and the retailer's gain, let's work backwards from the retail price of ₹1265. The calculations can be understood through the following steps:

1. Let the cost price of the table for the retailer be x. According to the problem, the retailer gains 25%. Therefore, the selling price (retail price) can be represented as:
   \( x + \frac{25}{100} \cdot x = 1.25x \)
   Given that the retail price is ₹1265, it follows that:
   \( 1.25x = 1265 \)
   Solving for x:
   \( x = \frac{1265}{1.25} = 1012 \)
   Thus, the cost price for the retailer is ₹1012.
2. Next, consider the cost to the wholesale dealer, y, with a gain of 15%. This means:
   \( y + \frac{15}{100} \cdot y = 1.15y \)
   And since the cost to the retailer is ₹1012:
   \( 1.15y = 1012 \)
   Solving for y:
   \( y = \frac{1012}{1.15} = 880 \)
   Therefore, the cost price for the wholesale dealer is ₹880.
3. Finally, the cost of production, z, with the manufacturer gaining 10%, is expressed as:
   \( z + \frac{10}{100} \cdot z = 1.10z \)
   Given the cost to the wholesale dealer is ₹880:
   \( 1.10z = 880 \)
   Solving for z:
   \( z = \frac{880}{1.10} = 800 \)
   Thus, the cost of production of the table is ₹800.

Therefore, the correct answer is ₹800.