A factory earns a profit of 10% on a garment by selling it to a shopkeeper for Rs. 2090. The shopkeeper further sells it to a customer earning a profit of 25%. When the manufacturing cost of the garment increased by 20%, the factory increased its profit to 15%. If the profit percentage earned by the shopkeeper remained unchanged, how much more money the customer has to pay for the garment?

A factory earns a profit of 10% on a garment by selling it to a shopkeeper for Rs. 2090. The shopkeeper further sells it to a customer earning a profit of 25%. When the manufacturing cost of the garment increased by 20%, the factory increased its profit to 15%. If the profit percentage earned by the shopkeeper remained unchanged, how much more money the customer has to pay for the garment? Correct Answer Rs. 665

Selling price of factory = Rs. 2090

Profit of factory = 10%

⇒ Manufacturing cost of garment = 2090/1.1 = Rs. 1900

Profit of shopkeeper = 25% of 2090 = Rs. 522.50

⇒ Price paid by customer = 2090 + 522.50 = Rs. 2612.50

Now,

When the manufacturing cost increased by 20%,

⇒ New manufacturing cost = 1900 + 20% of 1900 = Rs. 2280

Profit of factory = 15% of 2280 = Rs. 342

⇒ Cost price of shopkeeper = 2280 + 342 = Rs. 2622

Profit of shopkeeper = 25% of 2622 = Rs. 655.50

⇒ Price paid by customer = 2622 + 655.50 = Rs. 3277.50

∴ The customer had to pay = 3277.50 – 2612.50 = Rs. 665 more

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