A department store sells logo shirts at an original price of $20. Every month that a shirt doesn’t sell, the store reduces the s
elling price by 25%. The store employees get a 50% markdown off the current price. Macy works at the store and sees the shirts going into the second markdown month. She decides that since 25% + 25% + 50% = 100%, the shirts must be free to employees. What is Macy’s error?
Macy was calculating the employee price off the original amount each time instead of off the new selling price each month. Macy cannot add up all the discounts; she must apply them one by one.
