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The manufacturer of a table sells it to a wholesale dealer at a profit of 10%10 \%. The wholesale dealer sells the table to a retailer at a profit of 30%30\%. Finally, the retailer sells it to a customer at a profit of 50%50\%. If the customer pays Rs 42904290 for the table, then its manufacturing cost (in Rs) is

Solution

✅ Correct Option: 2

When we make a 10% profit, we sell for 110% of what we paid. This means we multiply by 1.1 (since 110% = 1.1).

Similarly:

30% profit → multiply by 1.3 (130% = 1.3)

50% profit → multiply by 1.5 (150% = 1.5)


Let the manufacturing cost be Rs. mm.

Manufacturer → Wholesale Dealer

Manufacturer sells at 10% profit

Wholesale dealer pays: 1.1m1.1m

Wholesale Dealer → Retailer

Wholesale dealer sells at 30% profit on what he paid

Retailer pays: (1.1m)×1.3=1.43m(1.1m) × 1.3 = 1.43m

Retailer → Customer

Retailer sells at 50% profit on what he paid

Customer pays: (1.43m)×1.5=2.145m(1.43m) × 1.5 = 2.145m


We know the customer paid Rs. 4290, so:

2.145m=42902.145m = 4290

m=42902.145=2000m = \dfrac{4290}{2.145} = 2000


Therefore, the manufacturing cost is Rs. 2000.


Key Takeaway: In chain profit problems, we multiply all the profit multipliers together. Here: 1.1×1.3×1.5=2.1451.1 × 1.3 × 1.5 = 2.145, which directly gives us the relationship between manufacturing cost and final selling price.

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