Question

A wholesaler buys a batch of ceiling fans at a 50% markup over the factory's base cost ₹C. He then allows a 20% trade discount to the retailer. The retailer applies a 40% markup on his cost and offers a flat 10% discount to customers on the printed price. If a customer finally pays ₹18,144, what is the original base cost (₹C) of one ceiling fan from the factory?

• A. ₹12,000
• B. ₹11,500
• C. ₹10,800
• D. ₹10,000

Answer 1

Answer:

A. ₹12,000

Let the factory’s base cost of one ceiling fan be (₹C).

Step 1: Wholesaler’s markup

The wholesaler marks up the fan by (50%).

$\text{Marked price to retailer} = 1.5C$

He then gives a (20%) trade discount.

$\text{Retailer’s cost} = 1.5C \times 0.8$
= 1.2C

Retailer’s markup

The retailer marks up his cost by (40%).

$\text{Printed price} = 1.2C \times 1.4$
$= 1.68C$

Retailer gives 10% discount

Customer pays (90%) of printed price.

$\text{Final selling price} = 1.68C \times 0.9$
$= 1.512C$

Given:

$1.512C = 18144$

So,

$C = \frac{18144}{1.512}$
$C = 12000$

Final Answer

₹12,000

The original factory base cost of one ceiling fan was ₹12,000.