Question

A boutique prices merchandise by adding 80%. It later decreases by 25% the price of items that do not sell quickly. Does the order in which the adjustments are applied make a difference? Explain.

Answer 1

The order you apply the adjustments does make a difference because the percents that are applied will be applied to different amount.

For example, 80% of 100 = $80. The price would be $180.

Decreasing this by 25% 25% of 180 = $45; 180-45 = $135.

25% of 100 is not the same as 25% of 180.