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A manufacturer sold an item to A at 10% profit who sold it to B at 20% profit and finally B sold it to C for Rs ‘P’ at a 15% loss. If the manufacture had directly sold the item to C at Rs ‘P’, he would have gained Rs. 427 profit, then what is the cost of the item for the manufacturer?

A manufacturer sold an item to A at 10% profit who sold it to B at 20% profit and finally B sold it to C for Rs ‘P’ at a 15% loss. If the manufacture had directly sold the item to C at Rs ‘P’, he would have gained Rs. 427 profit, then what is the cost of the item for the manufacturer? Correct Answer Rs. 3500

Let cost of item for manufacturer be 100x

CP for A = 110% of 100x = 110x

CP for B = 120% of 110x = 132x

CP for C = 85% of 132x = 112.2x = P

According to the question,

(100x + 427) = P

⇒ 112.2x = 100x + 427

⇒ 12.2x = 427

⇒ x = 35

∴ Cost of item for manufacturer = 100x = Rs. 3500

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