To find the final sale price of the watch, follow these steps:

1. Marking up the price by 40%

The store buys the watch for $75 and marks it up by 40%. The markup amount is calculated as: $\text{Markup} = 75 \times 0.40 = 30$ Now, add the markup to the original price to get the new price: $\text{New Price} = 75 + 30 = 105$

2. Reducing the price by 25%

During the clearance sale, the price is reduced by 25%. The discount amount is calculated as: $\text{Discount} = 105 \times 0.25 = 26.25$ Now, subtract the discount from the new price to get the final sale price: $\text{Final Price} = 105 - 26.25 = 78.75$

Conclusion:

The final sale price of the watch is $78.75.

Would you like more details or have any questions?

Here are 5 related questions to explore:

1. What would be the sale price if the store marked up the watch by 50% instead of 40%?
2. If the markup was 40%, but the clearance discount was 30%, what would the final price be?
3. How much profit does the store make after the clearance sale?
4. What would the final sale price be if the initial price was $100 with the same markup and discount?
5. How does the percentage markup affect the final profit?

Tip: When calculating discounts, always apply them to the marked-up price, not the original purchase price!