An item costing #$125# was marked up by #30%# of the selling price. During a sale, the item was reduced to #$120#. What was the rate of markdown during the sale?
2 Answers
Feb 20, 2018
Approximately
Explanation:
.
Let's let the marked up price
The rate of markdown would be:
which is approximately
Feb 20, 2018
If a
#$125.00 + 0.30 cdot $125.00 = $162.50#
If it was put on sale for
#($162.50 - $120.00)/($162.50) xx 100% = 26.2%#
So the amount of decrease in price divided by the original price is going to give the relative drop in price.