Multiple Choice Questions on The MRP of a article is 60 above its manufacturing cost The article is sold through a retailer who e........... for Mathematics - All Exams Preparation

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Multiple Choice Questions

The MRP of a article is 60 above its manufacturing cost The article is sold through a retailer who e...........

Quant (SSC) Profit and loss
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    The MRP of a article is 60% above its manufacturing cost. The article is sold through a retailer, who earns 19% profit on his purchase price. What is the approx. profit percentage for the manufacturer who sells his article to the retailer? The retailer gives 15% discount on MRP.

    15.2%

    Incorrect Answer

    14.2%

    Correct Answer

    13%

    Incorrect Answer

    12.5%

    Incorrect Answer
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    Explanation:
    The manufacturer sells the product to retailer, and then retailer sells to the customer.
    Assume manufacturing cost = 100 and manufacturer profit = x
    As Maximum Retail Price (MRP) of a product is 60% above its manufacturing cost,
    MRP = 160% of 100 = 160
    The retailer gives 15% discount on MRP. So, customer price is 85% of MRP.
    Buyer Price = 85% of 160 = 136
    Manufacturer makes x rupees profit, and then retailer makes 19% profit.
    So, 119% of (100 + x) = 136
    ⇒ 119 (100 + x) = 13600
    ⇒ (100 + x) = 114.28
    ⇒ x = 14.28
    Hence, Manufacturer profit = 14.2% 

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