A retailer sells all goods on a rate of mark-up on cost of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?
A) 25%
B) 15%
C) 30%
D) 17.5%
E) 20%

Question

Quizplus · Accepted Answer

The rate of markdown is calculated as the percentage decrease from the selling price to the cost price. If the markup is 25%, the selling price is 125% of the cost. Marking down to cost means reducing the price by 25% of the selling price, which is a 20% markdown from the selling price (25/125 = 0.20 or 20%).

A Retailer Sells All Goods on a Rate of Mark-Up