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A reputed company sells a wrist watch to a wholesaler making a profit of 10%. The wholesaler, in turn, sells it to the retailer making a profit of 10%. A customer purchases it by paying Rs. 990. Thus the profit of retailer is 2(3/11)% What is the cost incurred by the the company to produce it?
  • a)
    700
  • b)
     600
  • c)
    800
  • d)
    900
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A reputed company sells a wrist watch to a wholesaler making a profit ...
x*110/100*110/100*(100 + 25/11)/100 = 990
x = 800
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Most Upvoted Answer
A reputed company sells a wrist watch to a wholesaler making a profit ...
To solve this question, we need to work backwards from the given information to find the cost incurred by the company to produce the wristwatch.

Given:
- The customer purchased the wristwatch for Rs. 990.
- The retailer made a profit of 2(3/11)%.
- The wholesaler made a profit of 10%.
- The company made a profit of 10%.

Let's start by calculating the profit made by the retailer. We know that the profit of 2(3/11)% is equivalent to a selling price of Rs. 990. Let's calculate the cost price for the retailer.

Profit made by the retailer = 2(3/11)% = 23/11%

Let's assume the cost price for the retailer is x.

Selling price = Cost price + Profit
Rs. 990 = x + (23/11)% of x

Simplifying the above equation, we get:
990 = x + (23/110)x
990 = (110x + 23x) / 110
990 = 133x / 110
x = (990 * 110) / 133
x ≈ 825

So, the cost price for the retailer is approximately Rs. 825.

Now, let's calculate the cost price for the wholesaler. We know that the wholesaler made a profit of 10% on the cost price.

Cost price for the wholesaler = Cost price for the retailer / (1 + Profit percentage)
= 825 / (1 + 10/100)
= 825 / (1 + 1/10)
= 825 / (11/10)
= 750

So, the cost price for the wholesaler is Rs. 750.

Finally, let's calculate the cost incurred by the company. We know that the company made a profit of 10% on the cost price.

Cost incurred by the company = Cost price for the wholesaler / (1 + Profit percentage)
= 750 / (1 + 10/100)
= 750 / (1 + 1/10)
= 750 / (11/10)
= 750 * 10/11
= 7500/11
≈ 681.82

Therefore, the cost incurred by the company to produce the wristwatch is approximately Rs. 682 or we can say option C is the correct answer.
Free Test
Community Answer
A reputed company sells a wrist watch to a wholesaler making a profit ...
Answer — C. 800
Explanation :
x*110/100*110/100*(100 + 25/11)/100 = 990
x = 800
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A reputed company sells a wrist watch to a wholesaler making a profit of 10%. The wholesaler, in turn, sells it to the retailer making a profit of 10%. A customer purchases it by paying Rs. 990. Thus the profit of retailer is 2(3/11)% What is the cost incurred by the the company to produce it?a)700b)600c)800d)900e)None of theseCorrect answer is option 'C'. Can you explain this answer?
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A reputed company sells a wrist watch to a wholesaler making a profit of 10%. The wholesaler, in turn, sells it to the retailer making a profit of 10%. A customer purchases it by paying Rs. 990. Thus the profit of retailer is 2(3/11)% What is the cost incurred by the the company to produce it?a)700b)600c)800d)900e)None of theseCorrect answer is option 'C'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A reputed company sells a wrist watch to a wholesaler making a profit of 10%. The wholesaler, in turn, sells it to the retailer making a profit of 10%. A customer purchases it by paying Rs. 990. Thus the profit of retailer is 2(3/11)% What is the cost incurred by the the company to produce it?a)700b)600c)800d)900e)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A reputed company sells a wrist watch to a wholesaler making a profit of 10%. The wholesaler, in turn, sells it to the retailer making a profit of 10%. A customer purchases it by paying Rs. 990. Thus the profit of retailer is 2(3/11)% What is the cost incurred by the the company to produce it?a)700b)600c)800d)900e)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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