XAT 2015 — QA & DI Question 2
DiscountEasy
The Maximum Retail Price (MRP) of a product is 55% above its manufacturing cost. The product is sold through a retailer, who earns 23% profit on his purchase price. What is the profit percentage (expressed in nearest integer) for the manufacturer who sells his product to the retailer? The retailer gives 10% discount on MRP.
Answer & solution
- A
31%
- B
22%
- C
15%
13%
- E
11%
Solution
Let Manufacturing Cost = Rs. 100
M.R.P = Rs. 155
Discount = 10%
S.P (of retailer) = 155 ×.9 = Rs. 139.5
Profit% (of retailer) = 23%
S.P. (of manufacturer) = 139.5 × (100/123) = Rs. 113
Profit % (of manufacturer) = 13%
Hence, option (d).