This is because, first if we get the percentage that the shoes were marked up by, we get that they were marked up to $35, because 40% of $25 is $10 and $25 + $10 = $35.
Then, we find the percentage of $35 that she earned. In order to do this, we see what 11% of $35 is. We get $3.85, because 10% of $35 is $3.50, and 1% of $35 is $0.35. $3.50 + $0.35 = $3.85.
We know from the given that the person earns 250 dollars
for every complete doll that he makes. Since he was only able to make 7 dolls
completely, therefore the total money he earned was: