A department store sells logo shirts at an original price of $20. Every month that a shirt doesn’t sell, the store reduces the selling price by 25%. The store employees get a 50% markdown off the current price. Macy works at the store and sees the shirts going into the second markdown month. She decides that since 25% + 25% + 50% = 100%, the shirts must be free to employees. What is Macy’s error?
Answer
Answer:
Macy was calculating the employee price off the original amount each time instead of off the new selling price each month. Macy cannot add up all the discounts; she must apply them one by one.

Question

A department store sells logo shirts at an original price of $20. Every month that a shirt doesn’t sell, the store reduces the selling price by 25%. The store employees get a 50% markdown off the current price. Macy works at the store and sees the shirts going into the second markdown month. She decides that since 25% + 25% + 50% = 100%, the shirts must be free to employees. What is Macy’s error?

Answer

Answer:

Macy was calculating the employee price off the original amount each time instead of off the new selling price each month. Macy cannot add up all the discounts; she must apply them one by one.

Revolt · Accepted Answer

Macy was calculating the employee price off the original amount each time instead of off the new selling price each month. Macy cannot add up all the discounts; she must apply them one by one.

Applications of Percent

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