A DVD player that was originally priced at $399.95 and cost $215 is ultimately sold for $349.95.What were the reduction percentage and the maintained markup percentage on this DVD player?
A) 14.3 percent; 38.6 percent
B) 12.5 percent; 38.6 percent
C) 38.6 percent; 12.5 percent
D) 15.1 percent; 38.6 percent
E) 46.2 percent; 12.5 percent

Question

Quizplus · Accepted Answer

Reduction percentage = [(original price - selling price) / original price] x 100
Reduction percentage = [(399.95 - 349.95) / 399.95] x 100 = 12.5%

Markup percentage = [(selling price - cost) / cost] x 100
Markup percentage = [(349.95 - 215) / 215] x 100 = 62.3%

However, since the question asks for the maintained markup percentage (the markup percentage based on the original price), we need to use the formula:

Maintained Markup percentage = (markup percentage / (1 + markup percentage)) x 100%
Maintained Markup percentage = (0.623 / (1 + 0.623)) x 100% = 38.6%

Therefore, the correct answer is A, with a reduction percentage of 14.3% and a maintained markup percentage of 38.6%.

A DVD Player That Was Originally Priced at $399