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A manufacturer sells an article to a wholesale dealer at a profit

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A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 16 Aug 2018, 12:33
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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

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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 16 Aug 2018, 13:08
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


Given,

M(cp=x)----->W(cp=1.1x)------->S(cp=1.1x*1.2)---->C(cp=1.1x*1.2*0.85=$5610)

What is Cost price to M or, x=?

We have, 1.1x*1.2*0.85=5610
Or, \(x=\frac{5610}{1.1*1.2*0.85}\)
Or, x=$5000

Ans. (C)
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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 17 Aug 2018, 02:47
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 initial price be X.All three successive profit &loss % will give 12.2% gain overall. final price of article is 5610 Rs which is equivalent to 1.22x.
So x will be 5000$.
Choice C.



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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 17 Aug 2018, 07:06
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


CP of shopkeeper is \(\frac{5610}{85}*100 = 6600\)

CP of wholesale dealer is \(\frac{6600}{120}*100 = 5500\)

CP of manufacturer is \(\frac{5500}{110}*100 = 5000\)

Thus, Answer must be (C) $ 5000
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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 17 Aug 2018, 07:15
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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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 17 Aug 2018, 07:54
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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


OA:C
\({cost}\quad{price}\quad{of}\quad{article}\quad{to}\quad{the}\quad{manufacturer} : x\)

\(Manufacturer\rightarrow Wholesale\quad{dealer}:x + \frac{10}{100}x =\frac{11}{10}x\)

\({Wholesale\quad dealer}\rightarrow shopkeeper :\frac{11}{10}x+\frac{20}{100}*\frac{11}{10}x=\frac{66}{50}x\)

\(shopkeeper \rightarrow customer:\frac{66}{50}x - \frac{15}{100}*\frac{66}{50}x =\frac{66}{50}*\frac{85}{100}x=\frac{5610}{5000}x\)

As per question stem,\(\frac{5610}{5000}x=$5610\)
\(x=$5000\)
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Re: A manufacturer sells an article to a wholesale dealer at a profit  [#permalink]

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New post 20 Aug 2018, 11:21
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



We can let the cost price of the article to the manufacturer = x dollars.

So the wholesale dealer pays 1.1x dollars for the article and the shopkeeper pays 1.2(1.1x) = 1.32x dollars for the article. Since the shopkeeper sells the article for $5610 at a loss of 15%, he sells for 0.85(1.32x) = 1.122x dollars. So we have:
1.122x = 5610

x = 5610/1.122 = 5000

Alternate Solution:

Since the shopkeeper sells the article for $5610 at a loss of 15%, the article was bought by the shopkeeper at 5610/0.85 = $6600.

Since the wholesale dealer sold the article at $6600 and made 20% profit, the wholesale dealer bought the article for 6600/1.2 = $5500.

Finally, since the manufacturer sold the article for $5500 and made 10% profit, the article costs 5500/1.1 = $5000 for the manufacturer.

Answer: C
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Re: A manufacturer sells an article to a wholesale dealer at a profit &nbs [#permalink] 20 Aug 2018, 11:21
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