MAT Exam 2024 Paper

Concept:The successive profit percentages of manufacturer, wholesaler, and retailer are applied one after another on the increasing cost price.Explanation:Let the original cost of the product be $C$.Manufacturer gains $10\%$, so his selling price to the wholesaler is:$$C \times \frac{110}{100} = \frac{11C}{10}$$Wholesale dealer gains $15\%$, so the price passed to the retailer is:$$\frac{11C}{10} \times \frac{115}{100} = \frac{253C}{200}$$Retailer gains $25\%$, so the final retail price is:$$\frac{253C}{200} \times \frac{125}{100} = \frac{1265C}{800}$$Given retail price $= ₹1265$, therefore:$$\frac{1265C}{800} = 1265$$$$C = 800$$Answer:The cost of the product is $₹800$, i.e., Option A.