The wording of the question is a little vague from what I could understand. I believed what you did is (5.60-3.00)/5.60 = 0.46. This is the most valid answer that I can think of for it is simply saying that the item has a discount of 46% or "46% OFF of the original price", which I believe is what most people would get first time working this question. I think what datqvault is saying with its solution is that the discount of 54% means "54% of its original price" or 5.60 * (0.54) ~ 300 (302.4 to be exact). If you notice, .54 + .46 = 1 or the original price. Nevertheless, I would pick 46%.