A watch dealer pays 10% custom duty on a watch which costs 500 abroad.

1.	A watch dealer pays 10% custom duty on a watch which costs 500 abroad. For how shomark it, if he desires to nake a profit of 20% after giving a discount of 25% to the buyer ?
Answer» Custom duty is 10% Therefore, actual price is 500+500(10/100)= 550 let marked price = x Discount 25% SP = x-(x25/100) =3x/4 Now sp= (100+20)% of cp = 120%*550 = 660 so 3x/4= 660 x= 880 So he should mark it at 880

A watch dealer pays 10% custom duty on a watch which costs 500 abroad. For how shomark it, if he desires to nake a profit of 20% after giving a discount of 25% to the buyer ?

Answer»

Custom duty is 10%

Therefore, actual price is

500+500*(10/100)= 550

let marked price = x

Discount 25%

SP = x-(x*25/100)

=3x/4

Now sp= (100+20)% of cp

= 120%*550

= 660

so 3x/4= 660

x= 880

So he should mark it at 880