Exam 4: Mathematics of Merchandising

A wholesaler sells a jacket that is normally $152 less 36%, 36% and 27%. If the mark-up on the jacket is 68%, then the selling price is $152.03

If a grocery store's rate of mark-up on selling price of tomatoes is 55%, what is the rate of mark-up on cost of the tomatoes?

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of mark-up on cost?

On August 6, A&B Construction has three outstanding invoices payable to Excel Builder's Supply. Invoice 535, dated July 16, is for $3,228.56; Invoice 598, dated July 24, is for $2,945.31; and Invoice 678, dated August 3, is for $6217.69. All invoices have terms 4/10, 2/20, n/60. If A&B makes a $10,000 payment to Excel on August 6, what further payment on August 15 will settle the account? Note that Excel applies payments to the oldest invoices first.

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.

Niagara Dairies gives convenience stores a trade discount of 24% on butter listed at $72.00 per case. What rate of discount will Silverwood Milk Products have to give on its list price of $74.50 per case to match Niagara's price to convenience stores?

The 55% trade discount on an item is equal to $509. What is the net price?

A wholesaler lists an item for $48.75 less 20%. What additional "special promotion" discount must be offered to retailers to get the net price down to $36.66?

An invoice for $40,000 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 March 28. What payment April 8 would reduce the outstanding balance to $20,000?

The Annapolis Rotary Club sells hot dogs for $1.95 each at the annual Annapolis Fall Fair. The Rotary Club buys wieners at $3.95 per package of 10 wieners, and hot dog buns at $2.90 per dozen. It costs $78 for enough condiments for 1,000 hot dogs. What are the Rotary Club's rate of mark-up on selling price and rate of mark-up on cost?

Calculate the retail price of an item for which the retailer paid $120 and applied a mark-up on cost of 30% of cost.

Sonic Boom obtained a sound system for $2,400 less 30% and 15%. The system was originally priced so that, when sold in a "20% off" sale, the store's overhead and operating profit represent 25% and 15%, respectively, of the sale price. In a Midnight Madness Special, the system was sold at a " $\frac{1}{3}$ off" special price. a) What was the original "regular price"? b) What was the profit or loss at the special price?

Fasbe Corporation purchases computers at a cost of $425 less 9%. Its policy is to mark-up the cost of the computers by 40% of the selling price. As well, operating expenses are 15% of cost. In order to breakeven, Fasbe has to markdown the selling price by 33%.

An item is purchased for $300, less 35%, 20%, and 10%. The selling price is set so that estimated overhead expenses are 30% of the selling price, and operating profit is 25% of the selling price. What is the breakeven price of the item?

What single rate of discount would be equivalent to a series of 15% / 8% / 4%?

An item sells for $85. The cost of the item is $50 and overhead expenses are estimated to be 25% of the selling price. What is the rate of mark-up on selling price of the item?

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?

What is the break-even selling price?

The list price is $593 and the net price is $318. What is the trade discount rate?

An invoice dated March 15 for $400 with terms 2/10, 1/20, EOM, was received on March 20. By what date should the invoice be paid to qualify for the 2% discount?