Question

A wholesaler marks up the price of a microwave oven by 60% above its cost price. He gives a 15% trade discount to a retailer. The retailer, in turn, marks up the price by 25% above his purchase price and offers a 10% festival discount to the customer. If the customer finally pays ₹14,490 for the microwave, what is the original approximate cost price of the oven to the wholesaler?

• A. ₹9471
• B. ₹9500
• C. ₹10000
• D. ₹10500

Answer 1

Answer:

A. ₹9471

Let the wholesaler's original cost price = ₹x.

Step 1: Wholesaler marks up by 60%

$\text{Marked Price} = 1.60x$

Step 2: Gives 15% trade discount to retailer

$\text{Retailer's Purchase Price} = 1.60x \times 0.85 = 1.36x$

Step 3: Retailer marks up by 25%

$\text{Retailer's Marked Price} = 1.36x \times 1.25 = 1.70x$

Step 4: Retailer gives 10% festival discount

$\text{Customer Price} = 1.70x \times 0.90 = 1.53x$

Given:

$1.53x = 14,490$
$x = \frac{14,490}{1.53}$
$x \approx 9,470.59$

Answer

The wholesaler's original cost price was approximately ₹9,471.