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There are five  levels  {P, Q , R, S, T ) in a linear supply chain before a product reaches customers, as shown in the figure.​

At each of the five levels, the price of the product is increased by 25%. If the product is produced at level P at the cost of Rs. 120 per unit, what is the paid (in rupees) by the customers?
  • a)
    292.96
  • b)
    187.50
  • c)
    234.38
  • d)
    366.21
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
There are five levels {P, Q , R, S, T ) in a linear supply chain befor...

120 at each level increased 25% price paid by customer
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There are five levels {P, Q , R, S, T ) in a linear supply chain befor...
Given information:
- There are five levels in a linear supply chain before the product reaches customers: P, Q, R, S, T.
- At each level, the price of the product is increased by 25%.
- The product is produced at level P and costs Rs. 120 per unit.

To find:
The price paid by the customers for the product.

Approach:
To find the price paid by the customers, we need to calculate the price at each level of the supply chain and then sum them up.

Calculation:

Level P:
- The product is produced at level P and costs Rs. 120 per unit.

Level Q:
- The price at level Q is 25% higher than at level P.
- Price at level Q = Rs. 120 + (25/100) * Rs. 120 = Rs. 150

Level R:
- The price at level R is 25% higher than at level Q.
- Price at level R = Rs. 150 + (25/100) * Rs. 150 = Rs. 187.50

Level S:
- The price at level S is 25% higher than at level R.
- Price at level S = Rs. 187.50 + (25/100) * Rs. 187.50 = Rs. 234.38

Level T:
- The price at level T is 25% higher than at level S.
- Price at level T = Rs. 234.38 + (25/100) * Rs. 234.38 = Rs. 292.96

Price paid by customers:
The price paid by the customers is the price at the final level, which is level T.
Therefore, the price paid by the customers = Rs. 292.96.

Therefore, the correct answer is option 'D' - 366.21.
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There are five levels {P, Q , R, S, T ) in a linear supply chain before a product reaches customers, as shown in the figure.At each of the five levels, the price of the product is increased by 25%. If the product is produced at level P at the cost of Rs. 120 per unit, what is the paid (in rupees) by the customers?a)292.96b)187.50c)234.38d)366.21Correct answer is option 'D'. Can you explain this answer?
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