When a watch is sold at $\frac{7}{11}$ 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?
Answer & explanation
Correct answer: option 1
When a watch is sold at $\frac{7}{11}$ of the marked price means
\(\frac{SP}{MP}\) = \(\frac{7}{11}\)
Let the SP = 7x and the MP = 11x
So loss given = 20%
80% of the CP = 7x
100% of the CP = \(\frac{7x}{80}\) × 100
MP = 11x
So, MP : CP = 11x : \(\frac{7x}{80}\) × 100
MP : CP = 44 : 35