Successive Profit Margins on a Table

CAT 2017 Slot 2 · QA · Medium · Profit and Loss

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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

  1. A.

    1500

  2. B.

    2000

  3. C.

    2500

  4. D.

    3000

Answer

B

Explanation

Let the manufacturing cost be CC.

Customer price = C×1.10×1.30×1.50=4290C \times 1.10 \times 1.30 \times 1.50 = 4290.

C×1110×1310×32=4290C \times \frac{11}{10} \times \frac{13}{10} \times \frac{3}{2} = 4290 C×21452000=4290C \times \frac{2145}{2000} = 4290 C=4290×20002145=2000C = 4290 \times \frac{2000}{2145} = 2000

Thus, the manufacturing cost is Rs 2000.

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