Conclusion
You can only remove armor up to the armor penetration effectiveness cap of (debuffed armor + 15232.5)/3 and any penetration after 100% tooltip is ineffective.
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Raid boss armor = 10,643
Debuffed armor = 10,643 * (1 - (Sunder + Faerie Fire))
Debuffed armor = 10,643 * (0.75)
Debuffed armor = 7982.25
Effectiveness Cap = (debuffed armor + 15232.5) / 3
Effectiveness Cap = (7982.25 + 15232.5) / 3
Effectiveness Cap = 7738.25
Minimum Armor = debuffed armor - effectiveness cap
Minimum Armor = 7982.25 - 7738.25
Minimum Armor = 244, which is 1.58% DR against a level 80 attacker
Am I doing this correctly?