Word problem 4_
Problem 4: A manufacturer sales a product to a whole sale dealer at 20% profit. The whole sale dealer sales the product to a retailer at 15% profit. The retailer sales the product to a customer in Rs 897 with 30% profit. What is the making cost of the manufacturer?
Solution:
Manufacturer
Let’s suppose cost price of manufacturer is ‘x’
i-e
It is given that manufacturer’s profit is 20% of cost price;
i-e
or
Now using formula for sale price;
Whole Sale Dealer
Now this will become CP for whole sale dealer ;
now wsd will earn 15% profit on his this CP;
i-e
Again using formula for SP (for whole sale dealer);
Retailer
Now this SP of whole sale dealer will become CP of retailer;
Retailer earns 30% profit on this CP;
Now again for sale price use;
But given in question;
So CP of manufacturer is 500 Rs.
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