1. Convert the percentage discount to a decimal by dividing by 100:
\frac{25}{100} = 0.25
2. Calculate the discount amount:
40 \times 0.25 = 10
3. Subtract the discount from the original price to get the sale price:
40 - 10 = 30
Thus, the discount is 10 dollars and the sale price of the dress is 30 dollars.