Question 88

If the manufacturer gains 10%, the wholesale dealer 15% and the retailer 25%, then the cost of production of an article whose retail price is Rs. 1265, is:

Solution

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Let x be the production cost of the article.
Now, 1.1*1.15*1.25*x = 1265
x = (1265/1.1*1.15*1.25)
   = 800
Therefore, the production cost of article is 800
Therefore, option B is correct.

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