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How to Get the Answer of a Problem Based on the Markdown Amount

A markdown, or discount, is a percent reduction in an item's original price. Businesses may mark down their products for many reasons, such as to reduce inventory, make room for new seasonal items, sell off an excess supply or best competitors by giving consumers with an extra incentive to shop with them. There are two types of problems that can stem from a known markdown amount. The first, and far more common, involves figuring out the new, sale price after the markdown. The second, less-typical type involves finding out the original price when the sale price is already known.

Instructions

  1. Calculate Sale Price

    • 1

      Subtract the markdown percentage from 100. For instance, suppose a pair of shoes that originally cost $78 has a markdown amount of 40 percent. Subtract 40 percent from 100 percent, obtaining 60 percent.

    • 2

      Multiply the resulting percent by the original price. In the shoe example, multiply 60 percent by 78 to get 4680.

    • 3

      Divide this number by 100. In the previous example, divide 4,680 by 100, resulting in 46.8.

    • 4

      Write this number in dollars and cents, so that it possesses a dollar sign as well as exactly two digits to the right of the decimal point. If more than two digits follow the decimal point, round to the nearest hundredth. If less than two digits follow the decimal point, add zeroes until there are exactly two digits. The example becomes $46.80. This is the solution.

    Calculate Original Price

    • 5

      Subtract the markdown percentage from 100. For example, suppose a cutlery set is on sale for $52, which reflects a 20% markdown from the original price. Subtract 100 -- 20 to get 80.

    • 6

      Multiply the sale price by 100. In the cutlery example, multiply 52 by 100, obtaining 5,200.

    • 7

      Divide the result of Step 2 by the result of Step 1. In the example, divide 5,200 by 80, rendering 65.

    • 8

      Convert this number to dollars and cents. Round to the nearest hundredth, if required; conversely, add up to two zeroes to the right of the decimal point. Don't forget a dollar sign. In the example, write 65 as $65.00. This is the answer.

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