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

Kudos furniture sells maple wood bedroom sets for a price of $3560 if the purchase is financed. The company also advertises "no payments and no interest for one year." Joan and her husband suggested to pay cash for the furniture and got an offer from the salesperson for $3382, which they took. (i)How much was the discount for paying cash? (ii)What was the rate of discount on the cash purchase?

A fierce price war has broken-out over gas. Super-Save offered pre-price war gas at 73.9 cents per litre with 5% Super-Save discount. Cooperative gas was 75.9 cents per litre and they offered a 3%, 10% discount. What additional discount must Super-Save offer to beat their competitor's price by 2%?

What is the list price of an article that is subject to discounts of 23.25%, 11.2%, 4% if the net price is $664.88?

Determine the equivalent single rate of discount for the following series of discounts. Discount of 20%, 15% and 5%.

The net price of an article is $272.20 after discounts of 21% and 16% have been allowed. What was the list price?

A retailer buys a computer for resale at $500.00 less 35%, 10%. The store marks the merchandise to cover expenses of 15% of the regular selling price and a net profit of 24% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 25%. What is the operating profit or loss?

Burke Company received an invoice dated November 18 for a shipment of goods received November 21. The invoice was for $9255.00 less 40%, 13.375% with terms 5/10, 3/20, n/45. How much must Burke pay on December 2 to reduce its debt a)by $2000.00? b)to $2000.00? c)if Burke Company makes a partial payment of $4000 on November 25, how much should be credited to the account?

A natural gas oven cost a retailer $420.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 65% of the regular selling price. During the end-of-season sale, the barbecue is marked down 42%. a)What is the end-of-season sale price? b)What rate of markup based on cost will be realized during the sale?

The net price of a tennis racket is $79.99. What is the list price if a discount of 35% was allowed?

The Llama Wool Shoppe bought 225 wool overcoats for $16 875; 75 overcoats were sold at a markup of 160% of cost and 100 overcoats at a markup of 115% of cost; 20 of the overcoats were sold during a clearance sale for $130.00 each and the remaining overcoats were disposed of at 11% below cost. Assume all overcoats had the same cost. What was the markup realized on the purchase?

At Lowe's, each contractor receives 5% discount for his purchases. A contractor building a deck for a customer pays $7144.89 for the material he bought. What is the list price of the material?

A microwave oven costs a retailer $220.00. It carries a regular selling price on its price tag at a markup of 60% of the regular selling price. During a special promotion, the oven is marked down 30%. What is the sale price?

What is the selling price of an item bought for $1420.00 if the markup based on selling price is 59%?

Christine's pet shop buys cat litter for $15.00 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20 % of cost. a)For how much should a bag be sold? b)Calculate the amount of markup.

A retailer buys an appliance for resale at $2123.00 less 27%, 20%. The store marks the merchandise to cover expenses of 23% of the regular selling price and a net profit of 12.9% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 22%. What is the operating profit or loss?

What rate of discount has been allowed if an item that lists for $720.00 is sold for $681.57?

The following invoices, all with terms 5/10, 2/30, n/60, were paid together on March 15. Invoice No. 457 dated January 30 is for $294.67; invoice No. 542 dated February 15 is for $486.50; and invoice No. 877 dated March 10 is for $911.25. What amount was remitted?

A gross profit of $96.00 is made on a sale. If the gross profit was 52% based on selling price, what was the cost?

Determine the net price of an article listed at $12 050 less 20%, 16%, %.

Barmby's Aquarium Supplies purchased sets of aquariums for $315.00 less 10%, 12%. Expenses are 21% of the regular selling price and the required profit is 42% of the regular selling price. The store decided to change the regular selling price so that it could offer a 20% discount without affecting its margin. During the Christmas season, the unsold sets were advertised at a discount of 40%. What operating profit or loss was realized on the sets sold during the Christmas season?