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
Show answer & explanation
Correct answer: C
Explanation
The correct option is 3.
cost price (CP) of watch = cost + custom duty
CP = 500 + 
× 500 = 500 + 50 = 550
profit = 20%
profit = 
× CP = 
× 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 = 
× 100 = 880