Multiple choice

A wholesale dealer sold his goods to a retail dealer at a profit of $\displaystyle 12\frac{1}{2}$ $\%$. The retail dealer gained $20\%$ by selling the goods for Rs. $3240$. The cost price of the whole sale dealer was

  1. Rs. $2625$
  2. Rs. $2575$
  3. Rs. $2500$
  4. Rs. $2400$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Retail price = 3240, gain = 20%. Cost for retail = 3240 / 1.2 = 2700. This is the selling price for the wholesale dealer at 12.5% profit. Wholesale cost = 2700 / 1.125 = 2400.

AI explanation

Using the successive selling price method, the wholesale dealer's cost price is calculated as 3240 divided by (1 + 0.125) and (1 + 0.20). This equals 3240 divided by 1.125 and 1.20, which further simplifies to 3240 divided by 1.35, giving a cost price of Rs. 2400.

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