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?

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

CAT Exam > CAT Questions > A toothpaste manufacturer sells toothpaste to...

Join the Discussion on the App

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?

FREE This question is part of

CAT Mock Test- 2

Attempt Test

Attempt this Test

Verified Answer

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

View all questions of this test

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

Attention CAT Students!

To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.

Quantitative Aptitude (Quant)

Crash Course for CAT

CAT Mock Test Series 2024

3 Months Preparation for CAT

View all answers Start learning for free

< Previous Question Next Question >

Explore Courses for CAT exam

Similar CAT Doubts

The manufacturer of a table sells it to a wholesale dealer at a profit of 10%. The wholesale dealer sells the table to a retailer at a profit of 30%. Finally, the retailer sells it to a customer at a profit of 50%. If the customer pays Rs 4290 for the table, then its manufacturing cost (in Rs) is

View answer

Directions: Read the following passage carefully and answer the given question.The system of managing a companys interaction with current and future customers is called Customer Relationship Management or CRM. It makes use of modern technology to organise, automate and synchronise the following four areas; sales, marketing, customer service and technical support.CRM is designed to track and measure marketing campaigns over a variety of networks. These systems can track customer analysis by customer clicks as well as sales. Specifically, these systems are used in call centres, social media, direct mail, data storage files, banks and customer data queries. One unique aspect of this is that it can assist in formulating customer profiles.The goal of these systems is to track customers and their responses, record these responses and store them in databases and then mine this data for information that will improve customer relations. The CRM system codifies the interactions between companies and their customers in order to maximise sales. They make use of analytics and key performance indicators to give users much information on where to focus their marketing and customer service to maximise revenues as well as to decrease idle and unproductive contact with customers. Contact channels such as contact centres make use of CRM software. The software helps to direct customers to the right agent or information channel (such as informational recordings or automated bill payment or appointment scheduling). One key feature of CRM software is that it can be used to identify and reward loyal customers over a period of time, which can enhance customer relationships.One common function that CRM software is used for is to synchronise suitable appointment dates, times and methods for customer contact. Once the appointments are saved in the systems calendar, the information regarding the appointment can be easily retrieved. It can pull up information on specific information and then send an automated message as a reminder to the involved persons.Because of modern technology, the environment often requires businesses to interact with each other via the web. Because of this, The Sweeny Group defines CRM as being all the tools, technologies and procedures that are required to manage, improve or facilitate sales, customer/technical support and all related interactions with customers, prospective customers and business partners throughout the entire venture. Based on this definition, it is assumed that CRM is involved in every business to business transaction.The general concept is that CRM systems were created for customer-centric businesses, but they can also apply to business to business environments. In this sense, they are used to streamline and improve customer management conditions. Both systems (business to customer, business to business) are not created equal and are different in application. This is because relationships between business to business take longer to come to fruition than the business to customer. With this in mind, all softwares used for CRM must be personalised and delivered at individual levels.Q.Which of the following can be said about the current status of the usage of CRM systems?

View answer

A manufacturer sells a pair of glasses to a wholesale dealer at a profit of 18%. The wholesaler sells the same to a retailer at a profit of 20%. The retailer in turn sells them to a customer for Rs.30.09, thereby making a profit of 25%. The cost price of the manufacturer is

View answer

Directions: Read the following passage carefully and answer the given question.The system of managing a companys interaction with current and future customers is called Customer Relationship Management or CRM. It makes use of modern technology to organise, automate and synchronise the following four areas; sales, marketing, customer service and technical support.CRM is designed to track and measure marketing campaigns over a variety of networks. These systems can track customer analysis by customer clicks as well as sales. Specifically, these systems are used in call centres, social media, direct mail, data storage files, banks and customer data queries. One unique aspect of this is that it can assist in formulating customer profiles.The goal of these systems is to track customers and their responses, record these responses and store them in databases and then mine this data for information that will improve customer relations. The CRM system codifies the interactions between companies and their customers in order to maximise sales. They make use of analytics and key performance indicators to give users much information on where to focus their marketing and customer service to maximise revenues as well as to decrease idle and unproductive contact with customers. Contact channels such as contact centres make use of CRM software. The software helps to direct customers to the right agent or information channel (such as informational recordings or automated bill payment or appointment scheduling). One key feature of CRM software is that it can be used to identify and reward loyal customers over a period of time, which can enhance customer relationships.One common function that CRM software is used for is to synchronise suitable appointment dates, times and methods for customer contact. Once the appointments are saved in the systems calendar, the information regarding the appointment can be easily retrieved. It can pull up information on specific information and then send an automated message as a reminder to the involved persons.Because of modern technology, the environment often requires businesses to interact with each other via the web. Because of this, The Sweeny Group defines CRM as being all the tools, technologies and procedures that are required to manage, improve or facilitate sales, customer/technical support and all related interactions with customers, prospective customers and business partners throughout the entire venture. Based on this definition, it is assumed that CRM is involved in every business to business transaction.The general concept is that CRM systems were created for customer-centric businesses, but they can also apply to business to business environments. In this sense, they are used to streamline and improve customer management conditions. Both systems (business to customer, business to business) are not created equal and are different in application. This is because relationships between business to business take longer to come to fruition than the business to customer. With this in mind, all softwares used for CRM must be personalised and delivered at individual levels.Q.Which of the following is a use of CRM software by call centres?

View answer

Directions: Read the following passage carefully and answer the given question.The system of managing a companys interaction with current and future customers is called Customer Relationship Management or CRM. It makes use of modern technology to organise, automate and synchronise the following four areas; sales, marketing, customer service and technical support.CRM is designed to track and measure marketing campaigns over a variety of networks. These systems can track customer analysis by customer clicks as well as sales. Specifically, these systems are used in call centres, social media, direct mail, data storage files, banks and customer data queries. One unique aspect of this is that it can assist in formulating customer profiles.The goal of these systems is to track customers and their responses, record these responses and store them in databases and then mine this data for information that will improve customer relations. The CRM system codifies the interactions between companies and their customers in order to maximise sales. They make use of analytics and key performance indicators to give users much information on where to focus their marketing and customer service to maximise revenues as well as to decrease idle and unproductive contact with customers. Contact channels such as contact centres make use of CRM software. The software helps to direct customers to the right agent or information channel (such as informational recordings or automated bill payment or appointment scheduling). One key feature of CRM software is that it can be used to identify and reward loyal customers over a period of time, which can enhance customer relationships.One common function that CRM software is used for is to synchronise suitable appointment dates, times and methods for customer contact. Once the appointments are saved in the systems calendar, the information regarding the appointment can be easily retrieved. It can pull up information on specific information and then send an automated message as a reminder to the involved persons.Because of modern technology, the environment often requires businesses to interact with each other via the web. Because of this, The Sweeny Group defines CRM as being all the tools, technologies and procedures that are required to manage, improve or facilitate sales, customer/technical support and all related interactions with customers, prospective customers and business partners throughout the entire venture. Based on this definition, it is assumed that CRM is involved in every business to business transaction.The general concept is that CRM systems were created for customer-centric businesses, but they can also apply to business to business environments. In this sense, they are used to streamline and improve customer management conditions. Both systems (business to customer, business to business) are not created equal and are different in application. This is because relationships between business to business take longer to come to fruition than the business to customer. With this in mind, all softwares used for CRM must be personalised and delivered at individual levels.Q.Which of the following is possibly the most appropriate title for the passage?

View answer

Top Courses for CATView all

Quantitative Aptitude (Quant)

Crash Course for CAT

CAT Mock Test Series 2024

3 Months Preparation for CAT

CAT Mock Test Series and 500+ Practice Tests 2024

Top Courses for CAT

View all

Share with a Friend

Answer this doubt

Question Description
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?.

Solutions 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? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of 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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice CAT tests.

Explore Courses for CAT exam