Is a markdown of 25 percent followed by another markdown of 15 percent the same as a single markdown of 40 percent?

Answer 1

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%