A fashion designer sold a pair of jeans to a retail store for 40 perce

Manufacturing Cost = x
retailer Cost y = 1.4x
Customer Cost z = 1.25y = 1.25(1.4x) = 1.75x = 75% of manufacturing cost


ANS C

Manufacturing Cost = m
Retail cost = 1.4 m = (7/5) m
Customer Cost = (1.4) (1.25) m = (7/5) (5/4) m --> Cancel Fractions: Customer Cost = (7/4) m


The price the customer paid was what percent greater than the cost of manufacturing the jeans?

((7/4) m / m) - 1 = 0.75

The mark up is 75%

Assume Production cost is 200. (Assume in hundreds to avoid decimal and 200 instead of 100 as we will need to apply two successive percentages.)

M.P=200 ==> S.P for Designer= C.P for retailer==> 200+200*40%==> 280.

Customer Buying price=280+ 280*25%=350

Profit=% Change= (350-200)*100/200=75%..hence answer is C

Since the designer sold the jeans for 14/10 of what it cost him/her to make the jeans, I would start with a number that is easily divisible by 14.

1) Start with a price that the designer could have sold the jeans to the retail store for. I used 140 since it is easily divisible by 14.
2) 140 * 10/14 = the cost to the fashion designer to manufacture the jeans. 10/14 is the reciprocal of 14/10, which is the markup the designer sold the jeans for (40%). 140 * 10/14 = 100.
3) 140 * 5/4 = the price that the customer paid for the jeans. 140 * 5/4 = 175.
4) 175 is a 75% increase from 100.

The answer is C.

Alternatively, you could also just find the product of the two increases: (14/10) * (5/4) = 70/40, which is 1.75 and a 75% increase.

Answer = C. 75%

Let initial cost = 100

Selling price \(= 100 * \frac{140}{100} * \frac{125}{100} = 175\)

Difference = 175 - 100 = 75%

OFFICIAL SOLUTION:

(C) Since a 40% increase price is the same as multiplying the original amount by 1.4, the retail store paid 1.4 times the cost of manufacturing the jeans. The customer then paid 25% more than this amount, or 1.25 times it. So the customer paid 1.25 × 1.4 × the cost to manufacture, or 1.75 × the cost to manufacture. 1.75 times the manufacturing cost is a 75% increase in price.

The correct answer is choice (C).

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