If the manufacturer gains 10%, the wholesale dealer gains 15% and the retailer gains 25%, then find the cost of production of a table, if the retail price of which is ₹1265?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹800
Each seller’s selling price is the next seller’s cost price, so the three gains multiply on the cost of production.
Retail price \(=\text{cost}\times1.10\times1.15\times1.25=1.58125\times\text{cost}\)
\(1.58125\times\text{cost}=1265\)
Cost of production \(=\displaystyle\frac{1265}{1.58125}=800\)