A wholesaler sells a watch to a retailer at a profit of 25% and the retailer sells it to a customer at a loss of 12%. If the customer pays Rs 1045, what had it cost the wholesaler?

Let the cost price for the wholesaler be Rs x.
The wholesaler sells it at a 25% profit, so the selling price to the retailer is:

x×(1+
100
25
​
)=x×
100
125
​
=x×
4
5
​

The retailer sells it to a customer at a 12% loss, so the final selling price is:

(x×
4
5
​
)×(1−
100
12
​
)=x×
4
5
​
×
100
88
​

Given that the customer pays Rs 1045:

x×
4
5
​
×
25
22
​
=1045
x×
100
110
​
=1045
x×1.1=1045
x=
1.1
1045
​
=950
Thus, it cost the wholesaler Rs 950.