Certified Professional Category Analyst (CPCA) Practice Questions 2025 – All-In-One Guide to Exam Success

The calculation of the level of discount is represented by measuring the difference between the non-promoted price and the promoted price, relative to the non-promoted price itself. This approach allows for a clear understanding of how much the price has been reduced in comparison to the original price, expressed as a percentage.

In the formula, the subtraction of the promoted price from the non-promoted price indicates the absolute value of the discount offered. Dividing this number by the non-promoted price gives the proportion of the discount relative to the original price, which effectively tells us how significant the discount is in percentage terms. Multiplying by 100 then converts this ratio into a percentage format, making it easier to understand and communicate.

This method aligns with typical retail and marketing practices, where understanding the discount in relation to the original price helps both consumers and analysts appreciate the value of the promotion being offered. By focusing on the non-promoted price as the base, it provides a standardized reference for evaluating discounts across different items or promotions.