When a watch is sold at th of the marked price, there is a profit of 25%. At what percentage more than the cost price has the marked price of the watch been fixed? [Give your answer correct to 2 decimal places.]
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 2 i.e. 42.86%
Let the marked price of the watch be 8x then the selling price of the watch will be 7/8th of 8x = 7x
When selling it on 7x there is a profit of 25%
7x = 125% of cost price
cost price = x 100 = 5.6x
Difference between mark price and cost price = 8x - 5.6x = 2.4x
percentage required = x 100 = 30%