GMATbuster92 wrote:
A manufacturer sells an article to a wholesale dealer at a profit of 10%.The wholesale dealer sells it to a shopkeeper at 20% profit .The shopkeeper sells it to a customer for $5610 at a loss of 15%.Then what is the cost price of article to the manufacturer ?
A) $4000
B) $4500
C) $5000
D) $5500
E) $6000
Let's assume the cost price of the article(to the manufacturer) to be 100x.
If the article is sold to the wholesale dealer at 10%, the article would have become 110x(100x + 0.1*100x)
If the wholesaler then sold it to the shopkeeper at a profit of 20%, the article would have 132x(110x + 0.2*110x)
Now, the article is sold at a loss of 15% and costs \(\frac{85}{100}*132x = \frac{17*132x}{20}\) = 5610
Solving for x, we get x = \(\frac{561*200}{17*132} = \frac{33*100}{66} = 50\)
Therefore, the cost price of the article(to the manufacturer) is 100x =
$5000(Option C)
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