To solve this problem, we need to find two things:

1. Markdown: The difference between the original price and the reduced price.
2. Rate of Markdown: The markdown expressed as a percentage of the original price.

Step-by-Step Solution

1. Calculate the Markdown:

   The markdown is the difference between the original price and the reduced price.

   $\text{Markdown} = \text{Original Price} - \text{Reduced Price}$

   Given:

   • Original Price = $38
   • Reduced Price = $27

   Substituting these values:

   $\text{Markdown} = 38 - 27 = 11$

   So, the markdown amount is $11.

2. Calculate the Rate of Markdown:

   The rate of markdown is calculated by dividing the markdown by the original price and then multiplying by 100 to get a percentage.

   $\text{Rate of Markdown} = \left( \frac{\text{Markdown}}{\text{Original Price}} \right) \times 100$

   Substituting the values:

   $\text{Rate of Markdown} = \left( \frac{11}{38} \right) \times 100 \approx 28.95\%$

Final Answers

• Markdown: $11
• Rate of Markdown: 28.95%

Would you like more details on any part of the solution?

Here are some related questions to consider:

1. How to calculate markup instead of markdown?
2. What is the importance of knowing the rate of markdown in retail?
3. How to calculate the new selling price given a different rate of markdown?
4. Can the rate of markdown ever exceed 100%?
5. How to calculate the rate of markdown if only given the original price and markdown amount?

Tip: Remember to always express the markdown rate as a percentage to understand the discount effectively.