Question

Somar Fashions purchased t-shirts for $27 less 19%. During a promotion, they sold the t-shirts at a reduced price of $23.90. If the store's markup was $8.18, what was the rate of markdown?

A) 10%
B) 15%
C) 20%
D) 25%

Answer 1

The rate of markdown for the t-shirts sold during a promotion was approximately 20.47%, which is closest to 20%. This was calculated by finding the difference between the regular selling price and the promotion price, then dividing by the regular selling price and converting to a percentage.

Step-by-step explanation:

To calculate the rate of markdown for the t-shirts that were sold during the promotion, we need to first determine the original selling price before any markdown. Somar Fashions purchased the t-shirts for $27 with a discount of 19% which applies to the original price. Let’s calculate the actual cost after the discount.

Original cost of the t-shirts = $27
Discount = 19% of $27 = 0.19 × $27 = $5.13
Actual cost after discount = $27 - $5.13 = $21.87

With the markup of $8.18, the regular selling price becomes $21.87 + $8.18 = $30.05. The t-shirts were then sold at a promotion price of $23.90. The markdown amount equals the regular selling price minus the promotion price, so that’s $30.05 - $23.90 = $6.15.

Now, to find the rate of markdown, we use the markdown amount and divide it by the regular selling price, and then convert it to a percentage.

Markdown rate = ($6.15 ÷ $30.05) × 100%
Markdown rate ≈ 20.47%

The closest option to this calculated markdown rate is 20%, so the correct answer is C) 20%.