Calculate the markdown if a retailer decides to reduce the price of an item from $45 to $38 and sells 500 units.
A)7%
B)18.42%
C)15.56%
D)9%

Question

Quizplus · Accepted Answer

Markdown % = ((Original Price - New Price)/Original Price) x 100
Markdown % = ((45-38)/45) x 100
Markdown % = (7/45) x 100 
Markdown % = 15.56%
Therefore, the correct choice is B (18.42% is not correct and the other two options are incorrect).

Calculate the Markdown If a Retailer Decides to Reduce the Price