When a watch is sold at 7/11 of the marked price, there is a loss of 20%. What is the ratio of the marked price to the cost price of this watch?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 44 : 35
Let the marked price be 110x
If the item sold at 7/11 of the marked price, then the selling price would be 70x
The loss % is 20%
Cost Price = Selling Price × 100/(100 - loss %)
Selling price = Marked price × (100 - discount%)/100
The cost price = (100/80) × 70x = 700x/8
The ratio of marked price to cost price = {110x}/{700x/8} = 44 : 35