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

A tire dealer bought tires from a wholesaler at $75.00 dollars each and sold the tires at a mark-up of 25% of cost. a)Calculate the selling price of the tires. b)Calculate the rate of markup based on the selling price.

A toy shop reduces the price of a popular toy from $89.99 to $69.99 to increase their sales compared their online competition. a)What is the markdown amount in this case? b)What is the rate of markdown?

Deep Discount Audio buys home theatre systems for $3 895 less 29%, 15%. Expenses are 30% of the regular selling price and the required profit is 41% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 35% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 40%. What operating profit or loss does the store make on items sold during the sale?

What single discount rate is equivalent to multiple discounts of 13% and 25%?

A gross profit of $181.00 is made on a sale. If the gross profit is 22.5% based on selling price, what was the cost?

A convenience store received an invoice of $10 680 on May 3 with the terms 5/10, 2/15, n/30. What amount will reduce the amount due on the invoice by $7 500.00 if the payment was made on May 20?

Unique Furniture bought coffee tables for $399.00 less 23%, 10%, 5.5%. The store's overhead expenses come out to be 30% of regular selling price and the target profit is 55% of regular selling price. a)What is the maximum rate of markdown that the store can offer to break even? b)What is the realized rate of markup based on cost if the items are sold at the break-even price?

A gross profit of $57.75 is made on the sale of a dress. If the gross profit is 33.75% based on cost, what was the selling price? Round your answer to the nearest dollar value.

What amount will reduce the amount due on an invoice of $9410.25 by $842.00 if the terms of the invoice are 5/10, n/30 and the payment was made during the discount period?

A hitch and trailer listed at $2149.00 has a net price of $1360.00. What is the rate of discount?

At Rona's, a shed was sold for $888.00 during the end of the season clearance sale. If the clearance sale indicated a discount of 40%, what was the list price?

A gross profit of $800.00 is made on a sale of services. If the gross profit is 15% based on the selling price, what was the cost?

Canadian Tire lists a lawn mower at $449 less 20%. What is the net price of the lawn mower?

For Your Eyes Only Company bought plasma screen TV sets for $11 585 less 4.5%, 3.2%. Overhead is 19% of regular selling price and required profit is 31% of regular selling price. The gas plasma TV sets were marked at a new regular selling price so that the store was able to advertise a discount of 10% while still maintaining its margin. To clear the inventory, the remaining TV sets were marked down 15%. What operating profit or loss is realized at the clearance price?

Home System Alarms buys wireless alarm systems for $4000.00 less 30%, 10%. Expenses are 25% of the regular selling price and the required profit is 20% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 40% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 25%. What operating profit or loss does the store make on items sold during the sale?

Alpha computing is importing mother boards at a unit cost of $178. Alpha estimates that operating expenses per unit are 35% of cost. What should the selling price be if the desired operating profit per unit is 30% of the cost?

A skateboard costing $16.23 was marked up to realize gross profit of 50% of the selling price. a)What was the selling price? b)What was the gross profit as a percent of cost?

A convenience store received an invoice of $10 680 on May 3 with the terms 5/10, n/30 EOM. What amount will reduce the amount due on the invoice by $7 500.00 if the payment was made on June 3?

At Lowe's, each contractor receives 5% discount for his purchases. A contractor buys a saw which is listed at $149 less 10%. What is the actual price paid by the contractor?

An invoice for $4755.00, dated March 27, terms 3/10 E.O.M., was received March 29. What payment must be made on April 10 to reduce the debt to $1900.00?