Question 83

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?

Solution

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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