1 vote

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 price paid (in rupees) by the customers?

- $187.50$
- $234.38$
- $292.96$
- $366.21$

1 vote

Best answer

Given that, at each of the five levels, the price of the product is increased by $25\%.$

Then, the price paid (in rupees) by the customers $ = 120 \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} = \frac{46875}{128} = 366.21.$

$\text{(Or)}$

The price paid (in rupees) by the customers $ = (1.25)^{5} \times 120 = 366.21.$

So, the correct answer is $(D).$

Then, the price paid (in rupees) by the customers $ = 120 \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} \times \frac{125}{100} = \frac{46875}{128} = 366.21.$

$\text{(Or)}$

The price paid (in rupees) by the customers $ = (1.25)^{5} \times 120 = 366.21.$

So, the correct answer is $(D).$