Hello! The mark down is 12.5%, which means that will still have to pay a portion of the price. Mark down is a discount, where the price of the item goes down. To find the amount that needs to still be paid, subtract 12.5 from 100. 100 - 12.5 is 87.5 You still have to pay 87.5% of the price. Now, let's multiply that number by 32 to get the new price. 32 * 87.5% (0.875) is 28. There. The retail price is $28.