CAT 2017 Set-2 | Question: 73

Question

The manufacturer of a table sells it to a wholesale dealer at a profit of $10\%$. The wholesale dealer sells the table to a retailer at a profit of $30\%$. Finally, the retailer sells it to a customer at a profit of $50\%$. If the customer pays Rs. $4290$ for the table, then its manufacturing cost (in Rs) is

• A. $1500$
• B. $2000$
• C. $2500$
• D. $3000$

Answer 1

Let, the manufacturing cost of a table (in Rs) be $x$.

$\begin{array}{ccccccc} \text{Manufacturer} &  \text{Wholesale dealer} &  \text{Retailer} &  \text{Customer } \\ x   \overset{+10\%}{\longrightarrow} & x \times \left(\frac{110}{100}\right)  \overset{+30\%}{\longrightarrow} & \left[\left(x \times \frac{110}{100}\right)\times \frac{130}{100}\right]  \overset{+50\%}{\longrightarrow} & \left[\left(x \times \frac{110}{100} \times \frac{130}{100} \right) \times \frac{150}{100}\right] \end{array}$

Now,  $x\times\frac{110}{100}\times\frac{130}{100} \times \frac{150}{100} = 4290$

$\Rightarrow 39x\times11 = 4290\times200$

$\Rightarrow \boxed{x = 2000}$

$\therefore$  The manufacturing cost of a table is Rs $2000.$

Correct Answer$:\text{B}$