Question

If the manufacturer gains 6 %, the wholesale dealer 8% and the retailer 10 %. Then what

is the production cost of geyser whose retail price is Rs. 15741?

Answer 1

The production cost is Rs 12,500

Explanation:

Let the production cost be $x

At any point in time

sales price = cost price +( profit percentage* cost price)

Manufacturer gaining 6%

That would be;

x + 6% of x

x + 0.06x

= 1.06x

Wholesaler gaining 8%

= 1.06x + 8% of 1.06x

1.06x + 0.08(1.06x)

= 1.06x + 0.0848x

= 1.1448x

The for the retailer

= 1.1448x + 10% of 1.1448x

= 1.1448x + 0.11448x

= 1.25928x

1.25928x = 15,741

x = 15,741/1.25928

x = 12,500