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 26%

Explanation:

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Let's let the marked up price =x.

x=$125(1.3)=$162.5

The rate of markdown would be:

($162.5-$120)/($162.5)=0.261538

which is approximately 26%.

Feb 20, 2018

If a $125 item was marked up by 30% from its selling price, then 30% of $125 was added to its selling price.

$125.00 + 0.30 cdot $125.00 = $162.50

If it was put on sale for $120.00, then it was marked down by:

($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.