This is all done with the WoW Wiki formula.
Let's say a Hunter with 100 spreadsheet DPS and maxed hit rating.
Hunter attacks a mob with 5000 armor (32.14% DR) and will do 67.86DPS.
Hunter attacks a mob with 2400 armor due to 5 sunders (18.52% DR) and will now do 81.48DPS. (20.07% increase from no sunders)
Hunter attacks a mob with 1790 armor due to 5 sunders + faerie fire (14.5% DR) and will do 85.5DPS. (25.99% increase from no sunders or 4.5% from 5 sunders)
Same Hunter attacks a mob with 10,000 armor (48.64% DR) and will do 51.36DPS.
Hunter attacks a mob with 7400 armor due to 5 sunders(41.21% DR) and will do 58.79DPS. (14.47% increase from no sunders)
Hunter attacks a mob with 6790 armor due to 5 sunders + faerie fire (39.14% DR) 62.86DPS. (22.34% increase from no sunders or 6.9% from 5 sunders).
Next, a mob with 2000 armor (after other classes' debuffs)
2000 armor = 15.92673701 %DR
1999 armor = 15.92004141 %DR
1900 armor = 15.25185631 %DR
1899 armor = 15.24505278 %DR
1800 armor = 14.566053 %DR
1799 armor = 14.55913891 %DR
And so on and so forth.
The point is the following (as others have pointed out): the more -armor you have stacked up a target, the greater the effect in terms of increase of DPS will be.
For shits and giggles...
Using
http://www.wowhead.com/?item=11607#z0z a mob with 2000 armor would reduce its DR by another 2%, further increasing physical DPS from the raid (and threat from the tank). Now would have to wonder this: if enough physical dmg dealers use enough -armor items/buffs, would it then be worth having an Arms Warrior with that weapon + Blood Frenzy in a very melee heavy raid?