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Is a markdown of 25 percent followed by another markdown of 15 percent the same as a single markdown of 40 percent?
Wiki User
∙ 12y ago
No. The second markdown doesn't apply to the original price. It applies to what
the price is after the first markdown.
25% markdown followed by 15% markdown brings you to 63.75% of the original price ...
equivalent to a single markdown of 36.25% .
This depends on whether by "another markdown of 15%", you mean
- 15% of the (already marked-down) new price, or
- 15% of the original price
Example:
Original Price: $400
Single markdown of 40% of $400 gives a final price of $240
Original Price: $400
Markdown of 25% of $400 ($100) gives a new price of $300
Second markdown of 15% of the new price $300 ($45) gives a final price of $255
This is not the same as a single markdown of 40%
Original Price: $400
Markdown of 25% of $400 ($100) gives a new price of $300
Second markdown of 15% of the original price $400 ($60) gives a final price of $240
This *is* the same as a single markdown of 40%
Wiki User
∙ 12y ago
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