Q5.4 B8

Here is the solution to Q5.4 B8.

First, calculate the full cost, meaning what the folks would have paid if they didn't have the discount. That is 225 + 2 x 12 + .75 x 2 x 20 = 279

Now, the package was sold at the discounted price of 199. So the markdown was 279 - 199 = 80.

The rate of markdown was 80/279 = 28.67%

Points to note: the rate of markdown is calculated based on the list price.