Questions :
A wholesaler buys a batch of ceiling fans at a 60% markup over the factory’s base cost C. He then allows a 25% trade discount to the retailer. The retailer applies a 30% markup on his cost and offers a flat 15% discount to customers on the printed price. If a customer finally pays ₹20,400, what is the original base cost (C) of one ceiling fan from the factory?
Options :
- ₹15,375
- ₹15,425
- ₹15,575
- ₹15,750
correct answer : a)
Explanation :
Let the factory base cost be x.
Wholesaler’s marked price = 1.6x
Retailer’s cost after 25% trade discount = 1.6x × (75/100) = 1.2x
Retailer’s printed price after 30% markup = 1.2x × (130/100) = 1.56x
Customer’s price after 15% discount = 1.56x × (85/100) = 1.326x
Given,
1.326x = 20,400
x = 20,400 / 1.326
x ≈ 15,384.62
Nearest option = ₹15,375
Therefore, the original factory base cost of one ceiling fan is ₹15,375.
Hence, the correct answer is option (a) ₹15,375. The options ₹15,425, ₹15,575, and ₹15,750 are incorrect because they do not satisfy the given sequence of markups and discounts that result in a final customer price of ₹20,400.