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A manufacturer sells a toy to a whole seller at a profit of 12%. The whole seller sells it to a retailer at a profit of 10%. The retailer sells it to a customer for Rs 385, thereby gaining 25%. What is the cost price for the manufacturer?

A manufacturer sells a toy to a whole seller at a profit of 12%. The whole seller sells it to a retailer at a profit of 10%. The retailer sells it to a customer for Rs 385, thereby gaining 25%. What is the cost price for the manufacturer? Correct Answer Rs 250

Short Trick:

Cost price for the manufacturer = Rs 385 × 100/125 × 100/110 × 100/112 = Rs 250

Detailed Solution:

Let cost price for the manufacturer be Rs 100x

⇒ Cost price for the whole seller = Rs 100x(1 + 12/100) = Rs 112x

⇒ Cost price for the retailer = Rs 112x(1 + 10/100) = Rs 123.2x

⇒ Cost price for the customer = Rs 123.2(1 + 25/100) = Rs 154x

According to the question,

154x = 385

⇒ x = 2.5

∴ Cost price for the manufacturer = Rs 100 × 2.5 = Rs 250

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