Markdown is the difference (at sale) between the price an item is placed at for retail sale, and the actual price the item is sold
The correct option is; B. GHC 50.00
The reason for choosing option B is as follows;
The known parameters
The percentage by which damaged items are marked down = 25% to 40%
The percentage markdown offered by the newspaper coupon = 10%
The original marked price of the item = GHC 100
Strategy:
Apply the damaged items and coupon markdown percentages to the original marked price of GHC100 sum the results to find the total markdown
Solution:
Markdown due to damage:
Given that the item is damaged, to have the lowest price, we apply the largest markdown of 40%;
40% is removed from the price to which the item marked down due to damage, as follows;
The markdown due to damage = 40/100 × GHC 100 = GHC 40
Markdown due to Coupon Holder:
The markdown the coupon holder is to get = 10% off the retail price
Given that the damage is not mentioned in the newspaper, we have;
∴ The markdown the coupon holder is to get = 10/100 × GHC 100 = GHC 10
Total markdown:
The total markdown is therefore equal to GHC 40 + GHC 10 = GHC 50
The Lowest Price of A Damaged Items marked GHC100:
The lowest price of the item = Original price - Maximum markdown
The lowest price of the item = GHC 100 - GHC 50 = GHC 50
Learn more about markdown and markup concepts here;
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