A $35 item that is marked 40 percent off has a final cost of $21. The markdown is calculated on its own before it is subtracted from the original price to determine the final total.
A percent is equivalent to 0.01. Therefore, 40 percent is equivalent to 0.40. To calculate a certain percent of another number, the percent in decimal form is multiplied by that number. In this case, 0.40 is multiplied by $35. The result is $14, which is the markdown amount. The final cost is computed by subtracting the $14 markdown from the original $35 price. This gives the new total after the markdown is applied, which is, in this case, $21.