Multiple choice

Manufacturing cost of a certain car is 'a' dollars. The manufacturer sells the car to the retailer on 10 percent profit. If the retailer sells the car to a consumer on 5 percent profit, what price (in terms of a) does the consumer pay for the car?

  1. 1.050a

  2. 1.150a

  3. 1.155a

  4. 1.515a

  5. 1.555a
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The manufacturer sells to the retailer at a 10% profit, so the price is a * 1.10 = 1.1a. The retailer then sells to the consumer at a 5% profit on that price, so the final price is 1.1a * 1.05 = 1.155a.

AI explanation

The retailer's cost price is 110 percent of the manufacturing cost, giving 1.10a. The consumer pays 105 percent of this retail cost, calculated as 1.10a multiplied by 1.05. The final price paid by the consumer is 1.155a.

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