Lee's, a department store, decides to promote its sales during Christmas. In the clothing section, it offers customized men's T-shirts for $11.99. To every customer who purchases a pair of shoes, the shoe department issues a document promising a discount of $20 on the customer's next shoe purchase. The store also has its air conditioners on sale at a reduced price because the sale of air conditioners is slow during the month of December and the company wants to get rid of its slow-moving merchandise.
-The price reduction that Lee's offers for its air conditioners is an example of a:
A)rebate.
B)size discount.
C)markdown.
D)coupon.
E)quantity discount.

Question

Quizplus · Accepted Answer

The price reduction that Lee's offers for its air conditioners falls under the category of markdown, which is a reduction in the original price of a product to increase its demand or to clear slow-moving stock.

Lee's, a Department Store, Decides to Promote Its Sales During