# On an article the manufacturer gains 10%, the wholesale dealer gains 15%

On an article the manufacturer gains 10%, the wholesale dealer gains 15% and the retailer gains 25%. If retail price of the article is 1,265, the production cost of it is

(1) Rs. 800

(2) Rs. 850

(3) Rs. 900

(4) Rs. 950

**Answer: (1) Rs.800**

**Solution:-**

Retail price of the article = Rs.1,265

The retailer gains = 25%

Then, cost paid by retailer to wholesale dealer = 1,265 x 100/125

= 1,265 x 4/5

= Rs.1,012

Wholesale dealer gains = 15%

Then, cost paid by wholesale dealer to manufacturer = 1,012 x 100/115

= Rs.880

Manufacturer gains = 10%

Then, production cost of an article = 880 x 100/110

= Rs.800

Hence, the correct answer is option (1) Rs.800.