Markdowns and Discounts
General Explanation
Stores will often sell items at a sale price which is lower than the regular price of the item.
The amount of money you save by purchasing a product at the sale price is known as the markdown or discount. For example, if a pair of jeans normally sells for $29.95, and today it is selling for $24.95, what is the markdown on the item? Markdown = Regular Price - Sale Price Markdown = $29.95 - $24.95 Markdown = $5.00Sometimes, the markdown of an item is expressed as a percent of the regular selling price. This is referred to as the markdown rate or discount rate. For example, if Sal's Drugstore is having a sale in which all pain relievers are advertised at 35% off, we would say the markdown rate is 35%. Sample Problem
A vacuum cleaner that normally sells for $180 is on sale. The markdown rate is 25%. What is the selling price of the vacuum cleaner?
Solution
To find the selling price of the vacuum cleaner, we will first calculate the amount of the markdown. The markdown rate is 25%. When written as a decimal number, the markdown rate is .25.
Markdown = Regular Price x Markdown Rate Markdown = $180 x .25 Markdown = $45To find the sale price, we subtract the markdown from the regular price. Sale Price = Regular Price - Markdown Sale Price = $180 - $45 = $135The sale price of the vacuum cleaner is $135. |