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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

2011-05-25 02:28:20

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

2011-05-25 02:28:20
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Q: Is a markdown of 25 percent followed by another markdown of 15 percent the same as a single markdown of 40 percent?