CAT 2017 Question Paper | Quants Slot 2

Arithmetic part of the Quantitative Aptitude section of CAT Exam is one of the most important parts for you CAT Preparation Online. This part alone accounts for about a fifty percent of the total questions in the quants section. See 2IIM's CAT Blueprint where we have analysised CAT previous year papers to broadly outline what you can expect in the CAT Question Paper 2021. Nail your CAT Exam Preparation by solving actual CAT 2017 Question Paper. Below is a question from Slot 2: Quants of the paper, lets have a crack at it!

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

Video Explanation

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