A shop prepares fresh takeout where 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. The shop sells the dinners at an 80% markup based

on cost. They decide to offer a $1-off coupon in a newspaper ad so, what markdown percentage does this coupon represent?

To calculate the markdown percentage represented by the $1-off coupon, we first need to determine the original selling price of the baked chicken dinners without the coupon.

First, we calculate the cost of each baked chicken dinner by multiplying the cost of $3.20 by the anticipated number of dinners prepared, which is 40. Thus, the total cost of the 40 dinners is 40 * $3.20 = $128.

Next, we need to factor in the anticipated spoilage rate of 20%. To do this, we multiply the total cost by 1 plus the spoilage rate. So, the total cost including spoilage is $128 * (1 + 0.20) = $128 * 1.20 = $153.60.

Since the shop sells the dinners at an 80% markup based on cost, we need to calculate the selling price by multiplying the total cost including spoilage by 1 plus the markup rate. The selling price is $153.60 * (1 + 0.80) = $153.60 * 1.80 = $276.48.

Now, we can calculate the markdown amount by subtracting the $1-off coupon value from the selling price. The markdown amount is $276.48 - $1 = $275.48.

Finally, to determine the markdown percentage, we divide the markdown amount by the original selling price and multiply by 100. The markdown percentage is ($1 / $276.48) * 100 = 0.003619 * 100 = 0.3619%.

Therefore, the $1-off coupon represents a markdown percentage of approximately 0.3619%.