Damaged items are marked down 25% to 40%. A newspaper coupon holder; to an additional 10% markdown of the new price due to the damage. What is the lowest price of a damaged item that was originally marked GHC100? A GHC 35.60
B GH 5000
C. GHC 18.00
D. GHC 40.80
E GHC 23.40​

The correct option is; B. GHC 50.00

The reason for choosing option B is as follows;

The known parameters

The percentage by which damaged items are marked down = 25% to 40%

The percentage markdown offered by the newspaper coupon = 10%

The original marked price of the item = GHC 100

Strategy

Apply the damaged items and coupon markdown percentages to the original marked price of GHC100 sum the results to find the total markdown

We note that a markdown is the difference (at sale) between the price an item is placed at for retail sale, and the actual price the item is sold

Given that the item is damaged, to have the lowest price, we apply the largest markdown of 40% as follows;

For the price to which the item marked down due to damage, we remove 40% from the price to get;

The markdown due to damage = 40/100 × GHC 100 = GHC 40

The markdown the coupon holder is to get = 10% off the retail price

Given that the damage is not mentioned in the newspaper, we have;

∴ The markdown the coupon holder is to get = 10/100 × GHC 100 = GHC 10

The total markdown is therefore equal to GHC 40 + GHC 10 = GHC 50

Therefore;

The lowest price of the item = Original price - Maximum markdown

The lowest price of the item = GHC 100 - GHC 50 = GHC 50

Learn more about markdown here;

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