A wholeseller sells a jacket to a retailer at a profit of 5% and the retailer sells it to a customer at a profit of 10%. If the customer pays ₹4,158 for the jacket, then what was the cost price of the jacket for the wholesaler ?
Answer & explanation
Correct answer: option 4
Let the cost price for the wholeseller = 100R
Profit = 5%
Then the cost price for the retailer = 100R × \(\frac{105}{100}\) = 105R
Retailer earns 10% profit then the cost price for the customer = 105R x \(\frac{110}{100}\)
Now, according to the question,
The customer pays ₹4,158
⇒ 105R x \(\frac{110}{100}\) = Rs.4158
⇒ 1R = Rs.4158 x \(\frac{100}{110\;×\;105}\)
⇒ Cost price of the jacket for the wholesaler = 100R = Rs.4158 x \(\frac{10}{11 × 105}\) x 100 = Rs.3600