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A manufacturer sells goods to an agent a...

A manufacturer sells goods to an agent at a profit of 20%. The agent’s wholesale price to a shopkeeper is at a profit of 10% and the shopkeeper retails his goods at a profit of 12%. Find the retailer’s price of an article which had cost the manufacturer Rs. 25.

A

Rs. 37

B

Rs. 40

C

Rs. 44

D

Rs. 46

Text Solution

AI Generated Solution

The correct Answer is:
To find the retailer’s price of an article that cost the manufacturer Rs. 25, we will follow the profit percentages step by step through each level of sale: from the manufacturer to the agent, from the agent to the shopkeeper, and finally from the shopkeeper to the customer. ### Step 1: Calculate the Selling Price from Manufacturer to Agent The manufacturer sells the goods to the agent at a profit of 20%. - Cost Price (CP) for the manufacturer = Rs. 25 - Profit Percentage = 20% To find the Selling Price (SP) for the agent: \[ SP = CP + (Profit \% \times CP) \] \[ SP = 25 + (20\% \times 25) \] \[ SP = 25 + \left(\frac{20}{100} \times 25\right) \] \[ SP = 25 + 5 = Rs. 30 \] ### Step 2: Calculate the Selling Price from Agent to Shopkeeper The agent sells the goods to the shopkeeper at a profit of 10%. - Cost Price (CP) for the agent = Rs. 30 (from Step 1) - Profit Percentage = 10% To find the Selling Price (SP) for the shopkeeper: \[ SP = CP + (Profit \% \times CP) \] \[ SP = 30 + (10\% \times 30) \] \[ SP = 30 + \left(\frac{10}{100} \times 30\right) \] \[ SP = 30 + 3 = Rs. 33 \] ### Step 3: Calculate the Retail Price from Shopkeeper to Customer The shopkeeper sells the goods at a profit of 12%. - Cost Price (CP) for the shopkeeper = Rs. 33 (from Step 2) - Profit Percentage = 12% To find the Retail Price (RP): \[ RP = CP + (Profit \% \times CP) \] \[ RP = 33 + (12\% \times 33) \] \[ RP = 33 + \left(\frac{12}{100} \times 33\right) \] \[ RP = 33 + 3.96 = Rs. 36.96 \] ### Final Answer The retailer’s price of the article is Rs. 36.96. ---
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