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A retailer marks up the price of a watch by 25% and then offers a discount of 10

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Question: A retailer marks up the price of a watch by 25% and then offers a discount of 10%. If the cost price is $200, what is the selling price?

Options:

  1. $220
  2. $230
  3. $240
  4. $250

Correct Answer: $240

Solution: 

Marked Price = Cost Price + 25% of Cost Price = 200 + 50 = 250. Discount = 10% of 250 = 25. Selling Price = Marked Price - Discount = 250 - 25 = 225.

A retailer marks up the price of a watch by 25% and then offers a discount of 10

Practice Questions

Q1
A retailer marks up the price of a watch by 25% and then offers a discount of 10%. If the cost price is $200, what is the selling price?
  1. $220
  2. $230
  3. $240
  4. $250

Questions & Step-by-Step Solutions

A retailer marks up the price of a watch by 25% and then offers a discount of 10%. If the cost price is $200, what is the selling price?
  • Step 1: Identify the cost price of the watch, which is $200.
  • Step 2: Calculate the markup amount by finding 25% of the cost price. 25% of $200 is $50.
  • Step 3: Add the markup amount to the cost price to find the marked price. $200 + $50 = $250.
  • Step 4: Calculate the discount amount by finding 10% of the marked price. 10% of $250 is $25.
  • Step 5: Subtract the discount amount from the marked price to find the selling price. $250 - $25 = $225.
  • Markup and Discount Calculation – Understanding how to calculate the marked price by applying a markup percentage to the cost price, and then applying a discount percentage to the marked price to find the selling price.
  • Percentage Calculations – Ability to compute percentages accurately, including both markup and discount.
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