The manufacturer of a machine sells it to a wholesaler at a profit of 20%. The wholesaler, in turn, sells it to a retailer at a gain of 10%. The retailer sells it to a customer for Rs. 1452 at a gain of 10%. The cost price of the machine for the manufacturer is:
Explanation:
Let the manufacturers cost price be m. Then,
(SP)manufacturer = (CP)wholesaler = 1.2 m
(SP)wholesaler = (CP)retailer = (1.1) (1.2) m
(CP)retailer = (CP)customer = (1.1) (1.1) (1.2) m = Rs. 1452
⇒ 1.452m = 1452
m = 1452/1.452 = 1000
Hence, option (b).
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