A watch dealer pays 10% customs duty on a watch which costs Rs.500 abroad. He desires to make a profit of 20% after giving a discount of 25% to the buyer, The marked price should be
cost price (CP) of watch = cost + custom duty CP = 500 + (10/100) × 500 = 500 + 50 = 550 profit = 20% profit = (profit percent / 100) × CP = (20/100) × 550 = 110 selling price (SP) = CP + profit SP = 550+110 = 660 discount = 25% SP = 75% of MP {MP= marked price} 660 = 75% of MP MP = 660/75 × 100 = 880
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