An item's original price is $50, but a markdown leaves it at $30. What is the percentage discount applied?

An item's original price is $50, but a markdown leaves it at $30. What is the percentage discount applied?

• A. 40%
• B. 50%
• C. 60%
• D. 20%

Answer: (A)

To find the percentage discount applied to the original price, you first determine the amount of the discount. The original price is $50, and after the markdown, the price is $30. Therefore, the discount amount is calculated as follows: Discount Amount = Original Price - Sale Price Discount Amount = $50 - $30 Discount Amount = $20 Next, to find the percentage discount, you divide the discount amount by the original price and then multiply by 100 to convert it into a percentage: Percentage Discount = (Discount Amount / Original Price) × 100 Percentage Discount = ($20 / $50) × 100 Percentage Discount = 0.4 × 100 Percentage Discount = 40% This calculation shows that the percentage discount applied to the original price of $50 is 40%, which is why this option is the correct answer. Understanding how to compute discounts is essential for pricing strategies in retail and can help in analyzing sales and promotions effectively.

To find the percentage discount applied to the original price, you first determine the amount of the discount. The original price is $50, and after the markdown, the price is $30. Therefore, the discount amount is calculated as follows:

Discount Amount = Original Price - Sale Price

Discount Amount = $50 - $30

Discount Amount = $20

Next, to find the percentage discount, you divide the discount amount by the original price and then multiply by 100 to convert it into a percentage:

Percentage Discount = (Discount Amount / Original Price) × 100

Percentage Discount = ($20 / $50) × 100

Percentage Discount = 0.4 × 100

Percentage Discount = 40%

This calculation shows that the percentage discount applied to the original price of $50 is 40%, which is why this option is the correct answer.

Understanding how to compute discounts is essential for pricing strategies in retail and can help in analyzing sales and promotions effectively.