Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 101

Find the missing quantities. Round rates to the nearest whole percent and dollar amounts to the nearest cent. (See Examples.)
Finding the Reduced Price
Olympic Sports has marked down an Atlas Home Fitness Center. Find the reduced price if the original price was $2879 and the markdown is 30%.
Quick TIP
The original selling price is always the base or 100%, and the percent of markdown is always calculated on the original selling price.
SOLUTION
The markdown is 30% of $2879, or.3 × $2879 = $863.70. Find the reduced price as follows.
OBJECTIVE Calculate markdown, reduced price, and percent of markdown.

The calculator solution to this example uses the complement, with respect to 1, of the discount.

Calculating the Percent of Markdown
The total inventory of coffee mugs at the local bookstore has a retail value of $785. If the mugs were sold at reduced prices that totaled $530, what is the percent of markdown on the original price?

SOLUTION
First find the amount of the markdown.

Finding the percent of the original price that is the markdown is a rate problem. (See Chapter 3.)

The mugs were sold at a markdown of 32.5%.
Finding the Original Price
Bouza's Baby News offers a child's car seat at a reduced price of $63 after a 25% markdown from the original price. Find the original price.

SOLUTION
After the 25% markdown, the reduced price of $63 represents 75% of the original price. The original price, or base, must be found.

The original price of the car seat was $84.
Check the answer by subtracting 25% of $84 from $84: $84 ? 1.25 × $842 = $63.