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

OPG received an invoice from its supplier on May 9 for $32 479.87 dated May 7 with terms 3/10, 1/20, n/60. OPG always makes full payment on the first working day 25th of a given month. What payment will settle the account?

A dealer bought personal computers for $2250.00 less 41%, 31%. They were sold for $1585.00. a)What was the markup as a percent of cost? b)What was the markup as a percent of selling price?

Chris's Photographic Supplies sells a Minolta camera for $551.83. The markup is 72% of cost. a)How much does the store pay for this camera? b)What is the rate of markup based on selling price?

Deep Discount Electronics lists an article for $127.00 less 12.5% and 11.5%. A competitor carries the same article for $137.00 less 15.5%. 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?

United Furniture purchased RF42 model refrigerators from Samsung for $2751 each in 2012. The store marked up the price by 30% of the regular selling price. The store's overheads were estimated to be 10% of the regular selling price of each refrigerator in 2012. Following Christmas, Samsung introduced a new model. In order to make space for the new model, United Furniture decided to sell the RF42 model refrigerators at a markdown of 25%. How much was the operating profit or loss on each refrigerator as a result of the sale?

Find the cost of a car sold for $25 000 to realize a markup of 8% based on cost.

The Amusement Park bought 1200 t-shirts auctioned off en bloc for $6600.00. This means that each t-shirt has the same cost. On inspection, the t-shirts were classified as normal quality, seconds, and substandard. The 640 normal quality t-shirts were sold at a markup of 95% of cost, the 330 t-shirts classified as seconds were sold at a markup of 35% of cost, and the t-shirts classified as substandard were sold at 47% of their cost. What was the unit price at which each of the three classifications was sold?

Budget Electronics bought slightly used computers for $275.00 less 29%. The store's overhead is 23% of the cost and the desired profit is 37.5% of cost.

Dave and Lance buy pants for $32.75 less 12.75%, 18%. The pants are priced at a regular selling price to cover expenses of 35% of selling price and a profit of 32% of selling price. For a special weekend sale, shirts were marked down 15%. a)What was the operating profit or loss on the pants sold during the weekend sale? b)What rate of markup was realized based on the sale price?

DeSomma and Brown received an invoice for $14 520 dated November 29, terms 5/20, n/45, from Happy Valley Winery for a truckload of grapes received December 17. DeSomma and Brown made a partial payment of $4955.00 on December 12. a)By how much did DeSomma and Brown reduce the amount due on the invoice? b)How much does DeSomma and Brown still owe?

Lumber Queen sells 4x8 sheets of drywall for $8.00 each less 14%. Its competitors across town offer the same drywall for $12.00 less 30%, 20%. What additional rate of discount must Lumber King offer to meet the competitor's price?

What is the list price of an article that is subject to discounts of 40.5%, 10.4%, 5.0% if the net price is $650.00?

The cost of a TV to Leons is $377.00. If Leons wants a 30% rate of markup on the selling price, determine the markup.

Encino Ltd. received an invoice dated February 16 for $520.00 less 25%, 8.75%, terms 3/15 E.O.M. A cheque for $159.20 was mailed by Encino on March 15 as part payment of the invoice. a)By how much did Encino reduce the amount due on the invoice? b)How much does Encino still owe?

The Alpaca Wool Shoppe bought 150 scarves for $4150.00; 50 scarves were sold at a markup of 175% of cost and 30 scarves at a markup of 125% of cost; 40 of the scarves were sold during a clearance sale for $35.50 each and the remaining Scarves were disposed of at 15% below cost. Assume all scarves had the same cost. a)What was the markup realized on the purchase? b)What was the percent markup realized based on cost? c)What was the gross profit realized based on selling price?

The net price of an article is $84.62. What is the list price if a discount of 17% was allowed?

United Furniture purchased RF42 model refrigerators from Samsung for $2751 each in 2012. The store marked up the price by 30% of the regular selling price. The store's overheads were estimated to be 10% of the regular selling price of each refrigerator in 2012. Following Christmas, Samsung introduced a new model. In order to make space for the new model, United Furniture decided to sell the RF42 model refrigerators at a markdown which results into a break-even. Calculate the markdown.

The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?

An invoice dated May 12, terms: 5/10, n/30 for $3000.00 was received by Bruce Distributors. a)What is the last day of the discount period? b)What is the amount due if the invoice is paid on June 5? c)What is the amount due if the invoice is paid on May 20?

A data storage device that cost $20.25 was sold for $79.99. Calculate the rate of mark-up based on cost price.