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9 May, 07:40

Which results in a higher prices: a 10% markup followed by a 10% discount or a 10% discount followed by a 10%mark up?

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  1. 9 May, 07:45
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    Say an item costs $200.

    Example A:

    10% markup is $20.

    meaning that the item now costs $220.

    10% discount on a $220 item is $22.

    Now the item costs $198.

    Example B:

    10% discount is $20.

    the item now costs $180.

    10% markup is $18.

    Now the item costs $198.

    They cost the same.
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