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How is the level of discount calculated?

((Non-promoted price - promoted price) / Non-promoted price) * 100

The level of discount is calculated using the formula that evaluates the difference between the non-promoted price and the promoted price, then expresses that difference as a percentage of the non-promoted price. This approach allows for a clear understanding of how much cheaper the promoted price is compared to the original price.

In the correct formula, you first subtract the promoted price from the non-promoted price to find the absolute discount amount. Then, you divide that discount amount by the non-promoted price to determine the proportion of the discount relative to the original price. Finally, multiplying by 100 converts this fraction into a percentage, indicating how much of a discount is offered.

This method is widely used in pricing strategies as it provides a straightforward percentage that can be easily communicated to consumers, helping them comprehend the value of the discount.

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(Non-promoted price - promoted price) * 100

(Non-promoted price - promoted price) / 100

((Promoted price - Base price) / Base price) * 100

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