A toothpaste manufacturer sells toothpaste to a wholesaler at a price such that the manufacturer has a profit of 10%. The wholesaler sells the toothpaste to a retailer such that the profit earned is 20% of the cost price of manufacturing it. The retailer sells the toothpaste to customers at mentioned MRP and gets 20% profit from the sales. If the customer had to pay Rs 312 for one tube of toothpaste, what will be the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer?a)Rs 150b)Rs 195c)Rs 215d)Rs 200Correct answer is option 'D'. Can you explain this answer?

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A toothpaste manufacturer sells toothpaste to a wholesaler at a price such that the manufacturer has a profit of 10%. The wholesaler sells the toothpaste to a retailer such that the profit earned is 20% of the cost price of manufacturing it. The retailer sells the toothpaste to customers at mentioned MRP and gets 20% profit from the sales. If the customer had to pay Rs 312 for one tube of toothpaste, what will be the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer?

a)
Rs 150
b)
Rs 195
c)
Rs 215
d)
Rs 200

Correct answer is option 'D'. Can you explain this answer?

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A toothpaste manufacturer sells toothpaste to a wholesaler at a price ...

Let the cost of manufacturing 1 unit of toothpaste is x

Thus the selling price for the manufacturer is 1.1x

Profit for the wholesaler = 0.2x thus the selling price for wholesaler = 1.3x

The selling price for the retailer = 1.2 × 1.3x = 1.56x

We are given that 1.56x = 312 or x = 200

Profit for wholesaler = 0.2x = Rs 40 per tube

Profit for 5 tubes = Rs200

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Most Upvoted Answer

A toothpaste manufacturer sells toothpaste to a wholesaler at a price ...

To find the profit earned by the wholesaler, we need to understand the profit percentages at each stage of the supply chain. Let's break down the problem step by step:

Step 1: Profit earned by the manufacturer
The manufacturer sells toothpaste to the wholesaler at a price that gives them a profit of 10%. Let's assume the cost price of manufacturing one tube of toothpaste is Rs X.

- Profit earned by the manufacturer = 10% of X
- Selling price of one tube for the manufacturer = Cost price + Profit earned = X + 10% of X = 1.1X

Step 2: Profit earned by the wholesaler
The wholesaler sells the toothpaste to the retailer at a price that gives them a profit of 20% of the cost price. Let's assume the cost price of one tube for the wholesaler is Rs Y.

- Profit earned by the wholesaler = 20% of Y
- Selling price of one tube for the wholesaler = Cost price + Profit earned = Y + 20% of Y = 1.2Y

Step 3: Profit earned by the retailer
The retailer sells the toothpaste to customers at the MRP and gets a profit of 20% from the sales. Let's assume the cost price of one tube for the retailer is Rs Z.

- Profit earned by the retailer = 20% of Z
- Selling price of one tube for the retailer = Cost price + Profit earned = Z + 20% of Z = 1.2Z

Given that the customer pays Rs 312 for one tube of toothpaste, we can equate the retailer's selling price to the MRP:

1.2Z = 312

Solving this equation, we find that the cost price for the retailer is Z = Rs 260.

Step 4: Profit earned by the wholesaler (continued)
Now, we need to find the profit earned by the wholesaler when selling 5 toothpaste tubes to the retailer.

- Selling price for the wholesaler (for 5 tubes) = 1.2Y * 5 = 6Y
- Cost price for the wholesaler (for 5 tubes) = Cost price per tube * Number of tubes = Y * 5

Since we know the cost price for the wholesaler (Y) is Rs 260, we can calculate the profit earned by the wholesaler:

- Profit earned by the wholesaler = Selling price - Cost price = 6Y - 5Y = Y = Rs 260

Therefore, the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer is Rs 260, which corresponds to option D.

Answered by Wizius Careers · View profile

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A toothpaste manufacturer sells toothpaste to a wholesaler at a price such that the manufacturer has a profit of 10%. The wholesaler sells the toothpaste to a retailer such that the profit earned is 20% of the cost price of manufacturing it. The retailer sells the toothpaste to customers at mentioned MRP and gets 20% profit from the sales. If the customer had to pay Rs 312 for one tube of toothpaste, what will be the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer?a)Rs 150b)Rs 195c)Rs 215d)Rs 200Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A toothpaste manufacturer sells toothpaste to a wholesaler at a price such that the manufacturer has a profit of 10%. The wholesaler sells the toothpaste to a retailer such that the profit earned is 20% of the cost price of manufacturing it. The retailer sells the toothpaste to customers at mentioned MRP and gets 20% profit from the sales. If the customer had to pay Rs 312 for one tube of toothpaste, what will be the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer?a)Rs 150b)Rs 195c)Rs 215d)Rs 200Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A toothpaste manufacturer sells toothpaste to a wholesaler at a price such that the manufacturer has a profit of 10%. The wholesaler sells the toothpaste to a retailer such that the profit earned is 20% of the cost price of manufacturing it. The retailer sells the toothpaste to customers at mentioned MRP and gets 20% profit from the sales. If the customer had to pay Rs 312 for one tube of toothpaste, what will be the profit earned by the wholesaler by selling 5 toothpaste tubes to the retailer?a)Rs 150b)Rs 195c)Rs 215d)Rs 200Correct answer is option 'D'. Can you explain this answer?.

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