Question : A sells an article to B at a gain of 10%. B sells it to C at a gain of $7\frac{1}{2}$%. C disposes of it at a loss of 25%. If the prime cost to manufacturer A was Rs. 3200 then the price obtained by C is:
Option 1: Rs. 2800
Option 2: Rs. 2580
Option 3: Rs. 2670
Option 4: Rs. 2838
Correct Answer: Rs. 2838
Solution :
Here CP denotes the cost price and SP denotes the selling price.
Use: SP = CP$(\frac{100+Profit\%}{100})$
SP = CP$(\frac{100-Loss\%}{100})$
SP of C = CP × $(\frac{100+10}{100}) × (\frac{100+7.5}{100}) × (\frac{100-25}{100})$
= 3200 × $(\frac{11}{10}) × (\frac{107.5}{100}) × (\frac{3}{4})$
= Rs. 2838
Hence, the correct answer is Rs. 2838.
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