To determine the markdown rate and the reduced selling price of each shirt, follow these steps:

a. Calculate the rate of markdown:

Given:

• Purchase price of each shirt = $14.50
• Markup amount = $16.75
• Discount amount = $7.85

First, calculate the initial selling price (before the discount):

$\text{Initial Selling Price} = \text{Purchase Price} + \text{Markup Amount} = 14.50 + 16.75 = 31.25$

Next, calculate the markdown rate using the formula:

$\text{Markdown Rate} = \left( \frac{\text{Discount Amount}}{\text{Initial Selling Price}} \right) \times 100$

Substituting the values:

$\text{Markdown Rate} = \left( \frac{7.85}{31.25} \right) \times 100 \approx 25.12\%$

Therefore, the rate of markdown is 25.12%.

b. Calculate the reduced selling price per shirt:

The reduced selling price after applying the discount is:

$\text{Reduced Selling Price} = \text{Initial Selling Price} - \text{Discount Amount} = 31.25 - 7.85 = 23.40$

Therefore, the reduced selling price per shirt is $23.40.

Summary:

• Rate of markdown: 25.12%
• Reduced selling price per shirt: $23.40

Do you want more details or have any questions? Here are some related questions you might find interesting:

1. How would the selling price change if the markup amount was increased by $5?
2. What would be the markdown rate if the discount was $10 instead of $7.85?
3. How do you calculate the total revenue from selling a certain number of shirts at the reduced price?
4. What is the profit per shirt after the markdown?
5. How does the initial markup impact the final selling price after discounts?
6. How would a different discount percentage affect the selling price?
7. What is the effect of increasing the purchase price on the markdown rate?
8. How do you calculate the break-even point after applying discounts?

Tip: When calculating markdown rates, always use the initial selling price as the reference point.