The producer sells a good to the wholesaler at a profit of 20% and the wholesaler sells it to the retailer at a profit of 10%. What is the original price of the good (in Taka) if the retailer buys it for Tk. 244?
Solution
Correct Answer: Option E
If, Original CP is 100 taka
Producer sells it to wholesaler at 120 taka
ar 10% profit,
Wholesaler sells it to Retailer at 110 taka, when wholesaler buys it at 100 taka.
So,
when CP is 100 taka, SP to Retailer is 110 taka
when CP is 120 taka, SP to Retailer is 110 * 120 / 100 taka
= 132 taka
Thus,
Retailer buys it for 132 taka, when the original CP is 100 taka
Retailer buys it for 244 taka, when the original CP is (100 * 244 / 132) taka
= 184.85 taka
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