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

An invoice for $1121.45 with terms 2/10, n/30 is dated March 7. The contractor received it on March 14. What payment will settle the invoice, if the contractor pays it the next day?

A furniture store sold a bed regularly priced for $990.00 for $720.00. The bed was originally purchased for $600.00 less 40%. The store's overhead is 25% of the regular selling price. a)Calculate the rate of markdown at which the bed was sold. b)Calculate the operating profit or loss at the sale price.

Duckworth's Bird Supplies purchased sets of cages for $160.00 less 9%, 14%. Expenses are 17% of the regular selling price and the required profit is 55% of the regular selling price. The store decided to change the regular selling price so that it could offer a 25% discount without affecting its margin. During the Christmas season, the unsold sets were advertised at a discount of 25%. What operating profit or loss was realized on the sets sold during the Christmas season?

What amount must be paid to settle an invoice of $1200.00 dated November 28, terms 3/10, n/30 if the invoice is paid on December 3?

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 extremely slow. With spring products arriving in the warehouse, the retailer decides to mark down this line of coats by 70% to clear out the inventory. What is the operating profit or loss on the coats sold during the promotional sale?

A 12 % discount on a pair of washer and dryer that Gayle purchased, amounted to $156.00. Calculate the net price.

The Paintball Park bought 100 paint ball guns auctioned off en bloc for $7889.00. This means that each gun has the same cost. On inspection, the guns were classified as high quality, medium, and low quality. The 70 high quality guns were sold at a markup of 135% of cost, the 22 guns classified as medium were sold at a markup of 36% of cost, and the guns classified as low quality were sold at 73% of their cost. What was the unit price at which each of the three classifications was sold?

A merchant buys an item listed at $69.00 less 34% from a distributor. Overhead is 44% of cost and profit is 37.5% of cost. For how much should the item be retailed?

Eastside Pawn Shop bought items for $241.00 less 13%, 20%, 11.5%. The store's overhead is 36% of regular selling price and the profit required is 47% of regular selling price. a)What is the break-even price? b)What is the maximum rate of markdown that the store can offer to break even? c)What is the realized rate of markup based on cost if the items are sold at the break-even price?

Sepaba Ltd. received an invoice dated November 20 from Wallis Specialties of Germany with terms 5/20, n/45 for: 10 vases at $35.00 each; 20 figurines at $50.50 each; 40 glass flutes at $80.50 each. All items are subject to trade discounts of 30%, 10%, 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 December 8? 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 $1500.00?

A gas hedge trimmer cost a retailer $218.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 82% of the regular selling price. During the end-of-season sale, the hedge trimmer is marked down 21%. What is the end-of-season sale price?

The Nursery bought 800 plants auctioned off en bloc for $5550.00 This means that each plant has the same cost. On inspection, the plants were classified as normal quality, seconds, and substandard. The 420 normal quality plants were sold at a markup of 85% of cost, the 290 plants classified as seconds were sold at a markup of 21% of cost, and the plants classified as substandard were sold at 83% of their cost. a)What was the unit price at which each of the three classifications was sold? b)If overhead is 23% of cost, what was the amount of profit realized on the purchase? c)What was the average rate of markup based on the selling price at which the plants were sold?

The regular selling price of merchandise sold in a store includes a margin of 62% based on selling price. During a sale, an item which cost the store $231.25 was marked down 47%. For how much was the item sold?

A store has an end of season sale on snow blowers. The original price was $679.98. The first discount is 10% and the second discount is 14%. What is the final sale price of the snow blowers?

On June 18, an invoice dated June 18 for $6250.00 less 17%, 16%, terms 5/10, n/30, was received by Nova Distributors. a)What is the last day of the discount period? b)What is the amount due if the invoice is paid in full within the discount period?

A 14% discount on a dryer that Sean purchased, amounted to $70.00. Calculate the net price.

A retail store realizes a gross profit of $62.67 if it sells an article at a margin of 32% of the selling price. a)What is the regular selling price? b)What is the cost? c)What is the rate of markup based on cost? d)If overhead is 21% of cost, what is the break-even price? e)If the article is sold at a markdown of 25%, what is the operating profit or loss?

An appliance store sells electric kettles at a markup of 23.6% of the selling price. The store's margin on a particular model is $7.78. a)For how much does the store sell the kettles? b)What was the cost of kettles to the store? c)What is the percent markup based on cost?

Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for: All items are subject to trade discounts of 33.5%, 7.125%, 4%. a)What is the last day of the discount period? b)What is the amount due if the invoice is paid in full on September 6? 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 $1500.00?

The Sheepskin Shoppe bought 375 sheepskin coats for $75 000; 115 coats were sold at a markup of 210% of cost and 95 coats at a markup of 145% of cost; 25 of the coats were sold during a clearance sale for $260.00 each and the remaining coats were disposed of at 14% below cost. What was the gross profit based on selling price?