Question

3. Best discount a) Look at the three discounts below and without calculating indicate which one on first glance you think represents the biggest discount on a $40 pair of pants. - b) On a $40 pair of pants, which offer will yield the best discount? i. Buy one, get 50% off the second ii. $20 off all purchases of $50 or more iii. A markdown of $10.00 on the pants

Answer 1

Hello,

a) On first glance I think the biggest discount would be Option (i) buy one, get 50% off on the second.

b)

	Selling price of 1 pair of pants	$40
i)	Buy one, get 50% off on the second
	Total cost	40*2	80	a
	Less : 50% discount on 1 pair	40*50%	20	b
	Net cost		60	c=a-b
	Discount		25%	d=b/a
ii)	$20 off all purchases of $50 or more
	To reach $50, the customer has to buy minimum 2 pants.
	Total cost	40*2	80	a
	Less: flat discount		20	b
	Net cost		60	c=a-b
	Discount		25%	d=b/a
iii)	A markdown of $10 on the pants
	For a comparative purpose, let's take cost of 2 pants
	Original cost of 2 pants	40*2	80	a
	Less : markdown	10*2	20	b
	Net cost		60	c=a-b
	Discount		25%	d=b/a
	Conclusion-
	All the three offers yield the same discount.

Hope this helps. Thanks and have a great day!