Exam 6: Trade Discounts, Cash Discounts, Markup, and Markdown

Alia keeps his savings of $5000 in a current account at TD Bank for 3 years in order to avoid paying any banking fee. The rate of return for the current account is 0%. Mandated discount rate in Ontario is 2.5%. What is the worth of Alia's money in 3 years?

A cheese merchant buys a case of cheese for a listed price of $96.00 less 16.5% from a cheese distributor. Overhead is 17% of cost and profit is 61% of cost. For how much should the item be retailed?

Determine the equivalent single rate of discount for each of the following series of discounts. a)18 %, 10.0% b)50%, 33 %, 5.0%

The following invoice was received for 30 shrubs at $3.50 each and 10 raspberry plants at $1.50 each. Terms 4/10, 1/30, n/60. If the invoice was dated May 20 and it was paid on May 30 what was the amount of the payment?

A lathe is listed for $477.00 less 19 %, 9%, 7.7%. a)What is the net price? b)How much is the amount of discount allowed? c)What is the equivalent single rate of discount that was allowed?

A television set was sold during a clearance sale for $299.00. If the television was sold at a discount of 70%, what was the list price?

A wine merchant buys a case of wine for a listed price of $144.00 less 27% from a wine distributor. Overhead is 37% of cost and profit is 51% of cost. For how much should the item be retailed?

A fridge was sold during a clearance sale for $657.00. If the fridge was sold at a discount of 24%, what was the list price?

A certain Canadian company received an invoice dated March 20 from their Cambodian supplier for the following shipment of goods that they received on April 1. 2000 jeans at $25.60 each; 3050 shirts at $15.25 each; 1000 men hats at $2.50 each; 1500 women hats at $3.00 each. The terms of the invoice stated 4/20, n/45 ROG and all items are subject to trade discounts of 15%, 5%. a)What is the last day of the discount period? b)What is the amount due if the invoice is paid in full on April 19? c)If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $25 000.00?

An item that cost the dealer $2331.00 less 14%, 12.25% carries a price tag at a markup of 70% based on cost. For quick sale the item was reduced 30%. What was the sale price?

Hasan receives an invoice for $103.50 dated September 30, with terms 5/10, 2/30, n/60. He decides to pay it in full on October 25. What is the total amount paid to settle the account?

A piece of jewellery costing $150 was marked up by 40% of the selling price. During the stores silver jubilee sale, the selling price was reduced to $175. What was rate of markdown during the sale?

Bargain City bought desks for $175.00 less 29%, 21%, 13%. The store's overhead is 65% of cost and normal profit is 27% of cost. a)What is the regular selling price of the desks? b)At what price can the desks be put on sale so that the store incurs an operating loss of no more than 30% of the overhead? c)What is the maximum rate of markdown at which the desks can be offered for sale in part b)?

Big Boy Clothing Store lists an article for $99.00 less 20% and 15%. A competitor carries the same article for $115.00 less 18%. What further discount (correct to the nearest 1/10 of 1%)must the competitor allow so that its net price is the same as Deep Discount's?

Uptown Goldsmith sells watches for $840.00 less 12.55%. Its competitors across the street offer the same type of watch for $860.00 less 13.25%, 11.5%. What additional rate of discount must Uptown offer to meet the competitor's price?

A 3D printer listed at $3499.00 has a net price of $2599.00. What is the rate of discount?

A clothing retailer buys winter coats from one of its suppliers for $67.50. The regular selling price of the coats includes operational expenses of 46% of the selling price and a profit of 30% of the selling price. Due to an unexpected warm winters, the sales have been slow. The retailer decides to mark down this line of coats by 20% to increase sales. What is the operating profit or loss on the coats sold during the promotional sale?

A dollar store bought 1000 pair of socks auctioned off en bloc for $2000.00. This means that each pair of socks has the same cost. On inspection, the socks were classified as normal quality, seconds, and substandard. The 600 normal quality socks were sold at a markup of 90% of cost, the 300 pair of socks classified as seconds were sold at a markup of 30% of cost, and the socks classified as substandard were sold at 60% of their cost. What was the unit price at which each of the three classifications was sold?

Honest Ed sells a product for $225.00 less 7.5% and 5%. Factory Direct carries the same product for $209.99 less 5%. What further discount must Factory Direct allow so that its net price will be the same as that of Honest Ed?

The Camping Store buys sleeping bags for $54.10 less 12% for buying more than 50 sleeping bags. The store operates on a margin of 51% of the sale price and advertises that all merchandise is sold at a discount of 25% of the regular selling price. What is the regular selling price of the sleeping bags?