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Question 7 : The manufacturer of a table sells it to a wholesale dealer at a profit of 10%. The wholesale dealer sells the table to a retailer at a profit of 30%. Finally, the retailer sells it to a customer at a profit of 50%. If the customer pays Rs 4290 for the table, then its manufacturing cost (in Rs) is

1. 1500
2. 2000
3. 2500
4. 3000

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Video Explanation

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Explanatory Answer

Method of solving this CAT Question from Profit and Loss

Given that the manufacturer of a table sells it to the whole sale dealer at a profit of 10%

Then the whole sale dealer sells to a retailer at a profit of 30%

The retailer sells to a customer at a profit of 50%

If the customer pays Rs.4290 for the table then 1.1 × 1.3 × 1.5X = 4290
⟹ \\frac{11}{10}) × \\frac{13}{10}) × \\frac{3}{2})X = 4290
⟹ X = 4290 × \\frac{10}{11}) × \\frac{10}{13}) × \\frac{2}{3})
X(Manufacturing cost) = Rs. 2000

The question is "The manufacturer of a table sells it to a wholesale dealer at a profit of 10%. The wholesale dealer sells the table to a retailer at a profit of 30%. Finally, the retailer sells it to a customer at a profit of 50%. If the customer pays Rs 4290 for the table, then its manufacturing cost (in Rs) is"

Hence, the answer is 2000

Choice B is the correct answer