A wholesaler sells a watch to a retailer at a profit of 33% and the retailer sells it to a customer at a loss of 20%. If the customer pays Rs 2,181.2, what had it cost the wholesaler?
For the wholesaler,
Let the cost price = Rs. $$100x$$
With profit of 33%, Selling price = $$\frac{133}{100} \times 100x = Rs. 133x$$
For the retailer,
Cost price = Rs. $$133x$$
With a loss of 20%, Selling price = $$\frac{80}{100} \times 133x = Rs. 106.4x$$
For the customer,
Cost price = $$106.4x = 2181.2$$
=> $$x = \frac{2181.2}{106.4} = 20.5$$
$$\therefore$$ Cost price for retailer = $$100 \times 20.5 = Rs. 2050$$
=> Ans - (A)
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