Exam 4: Mathematics of Merchandising

Worker's World bought 250 pairs of rubber boots at $15 per pair. The manager applies a 90% rate of mark-up on cost when pricing footwear. What is the operating profit per pair if overhead expenses work out on average to be 20% of the selling price?

Water Sports Ltd. pays $360 less 25% for a backyard above-ground pool kit. Overhead expenses are 16 $\frac{2}{3}$ % of the regular selling price, and the operating profit is 15% of the selling price. a) What is the maximum rate of markdown the store can offer and still break even? b) What is the profit or loss per unit if Water Sports clears out its remaining stock at 20% off in a Hot August Bargains sale?

Given the following: Determine: a) The amount of mark-up. b) The amount of operating (overhead) expenses. c) The operating profit or loss. d) The rate of mark-up on cost. e) The rate of mark-up on selling price.

A pharmacy marks up its springtime shipment of sunglasses to provide for overhead expenses of 40% of cost and a profit of 70% of cost. At the end of the summer, what rate of markdown can the pharmacy apply to the remaining inventory of sunglasses and still break even on sales at this level?

When does the discount period end?

Ski 'n Cycle purchased Elan 200 skis for $492 per pair and priced them to give a rate of mark-up on selling price of 40%. When this model was discontinued, the store marked down its remaining stock by 30%. What was the sale price after the markdown?

If the rate of mark-up on selling price of lettuce in a grocery store is 60% of the selling price, what is the rate of mark-up on cost?

Ace Fasteners Ltd. offers Bob's Hardware a trade discount of 44% on all products. Calculate the total list price of a shipment for which Bob's is charged $859.

The current price of Acme stock is $5.80. The stock is down 90% from its price one year ago. What was the stock price one year ago?

How many employees will the employer have after all cuts?

A television set costing $260 was marked up by 35% of the selling price. During a sale, the item was reduced to $300. What was the rate of markdown during the sale?

An item costing $50 was marked up 40% of the cost price and then reduced for a quick sale by 40% of the selling price. What was the sale price?

What was the sale price?

Mercola's Equipment Warehouse purchased equipment for resale at $2,420 less 9%, 44% and 13%. Mercola has operating expenses equal to 56% of the product cost. There is a 56% mark-up on the selling price. If Mercola wanted to break-even, then it would have to sell the equipment at $1,574.74 to break-even.

A product is purchased for $1,460 less 30% and 5%. Mark-up on cost is 54%. Determine the retail price for the product.

What was the profit (loss) at the sale price?

A 37.5% trade discount on a camera represents a discount of $223.14 from the suggested retail price. What is the net price to the buyer?

An invoice for $25,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. A payment of $14,000 was made on April 14. How much was credited to the account?

Net price to a car dealer of a model with a manufacturer's list price of $34,900 is $28,687.80. What trade discount rate is the dealer being given?

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What was the operating profit or loss of the set at the reduced price?