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Discounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Discounting

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • February 3, 2019 at 8:20 pm #504062
    stevenlino
    Member
    • Topics: 19
    • Replies: 8
    • ☆

    ‘Strange Rabbit’, an alternative clothing store, offer 1/2 off all items for sale, for ten days only. They offer a futher 1/3 off all clothing which are clearance items. What percentage is deducted in total during the ten-day promotion for clearance items of clothing?

    February 4, 2019 at 7:48 am #504092
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    Please do not simply set test questions and expect an answer. You much have an answer in the same book in which you found the question, and so you should ask about whatever it is in the answer that you are not clear about, and then I will explain.

    For every $100 of normal selling price, then during the sale they are offered at 1/2 x $100 = $50. For 10 days, there will an extra 1/3 off, so the price will be $50 – (1/3 x $50) = $33.33.

    Therefore instead of charging $100 they will be charging only $33.33, a reduction of $66.67.

    Therefore the total reduction is 66.67/100 = 66.67%

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