Multiple choice

Directions: The problem contains a question and two statements giving certain data. You have to select the correct answer from (1) to (5), depending on the sufficiency of the data given in the statements to answer the question. A manufacturer sells an article to a wholesale dealer at a profit of 20%. The wholesale dealer sells the same to a retailer at a profit of 25%. The retailer in turn, sells it to a customer at a profit of 20%. What is the cost price for the manufacturer? (A) The customer bought the article for Rs. 27. (B) The retailer sold the article for Rs. 54.

  1. Statement (A) alone is sufficient to answer the question, and statement (B) alone is not sufficient to answer the question.

  2. Statement (B) alone is sufficient to answer the question, and statement (A) alone is not sufficient to answer the question.

  3. Statements (A) and (B) together are sufficient to answer the question, but neither statement alone is sufficient.

  4. Each statement alone is sufficient to answer the question.

  5. Both statements (A) and (B) together, are not sufficient to answer the question, and additional data specific to the problem is needed.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let cost price be C. Manufacturer sells at 1.2C. Wholesaler sells at 1.2C * 1.25 = 1.5C. Retailer sells at 1.5C * 1.2 = 1.8C. Statement A: 1.8C = 27, so C = 15. Statement B: 1.8C = 54, so C = 30. Each statement provides enough information to solve for C.

AI explanation

Using the successive selling price formula, the final selling price equals the manufacturer cost price multiplied by 1.20, then 1.25, and then 1.20, giving a total multiplier of 1.8. Statement A gives the final customer price as Rs. 27, so dividing by 1.8 gives the manufacturer cost price of Rs. 15. Statement B gives the retailer selling price as Rs. 54, which is the final customer price, so dividing by 1.8 gives the same manufacturer cost price of Rs. 15. Each statement alone provides the necessary final selling price to calculate the cost.

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