Question

The manufacturer of a table sells it to a wholesale dealer at a profit of 10%. The wholesale dealer sells the table to a retailer at a profit of 30%. Finally, the retailer sells it to a customer at a profit of 50%. If the customer pays Rs 4290 for the table, then its manufacturing cost (in Rs) is

• A. 1500
• B. 2000
• C. 2500
• D. 3000

Answer 1

The Correct Option is B

To determine the manufacturing cost of the table, we need to work backwards from the customer's payment of Rs 4290. This process involves understanding the profit margins at each stage:

1. Retailer's Sale to Customer: The retailer sells the table at a 50% profit. If Rs 4290 is the sale price, we denote the cost price for the retailer as \(x\). The relationship is \(x + \frac{50}{100} \times x = 4290\). This simplifies to \(1.5x = 4290\), giving \(x = \frac{4290}{1.5} = 2860\).
2. Wholesale Dealer's Sale to Retailer: The wholesale dealer sells to the retailer at a 30% profit. If Rs 2860 is the sale price, we denote the cost price for the wholesale dealer as \(y\). The equation is \(y + \frac{30}{100} \times y = 2860\). This simplifies to \(1.3y = 2860\), yielding \(y = \frac{2860}{1.3} = 2200\).
3. Manufacturer's Sale to Wholesale Dealer: The manufacturer sells to the wholesale dealer at a 10% profit. Let the manufacturing cost be \(z\). The equation is \(z + \frac{10}{100} \times z = 2200\), simplifying to \(1.1z = 2200\), which gives \(z = \frac{2200}{1.1} = 2000\).

Therefore, the manufacturing cost of the table is Rs 2000.