ICSE Class 9 Answered

The manufacturer sells the product to retailer, and then retailer sells it to the buyer.

Let the manufacturing cost be 100 and manufacturer profit = x%

Given: Maximum Retail Price (MRP) of a product is 50% above its manufacturing cost,

Therefore, MRP = 100(1 + 0.5) = 150

The retailer gives 20% discount on MRP.

So, for the buyer, price of the article will be is 80% of MRP.

Cost Price for buyer = 150×0.8 = 120

Manufacturer makes x% profit, and then retailer makes 25% profit.

So, 100(1 + x)×(1 + 0.25) = 150×0.8

x = -0.04

Hence, Manufacturer loss = 4%