Exam 4: Mathematics of Merchandising

An invoice for $4,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. What payment would settle the invoice on October 15?

A pair of shoes listed at $70 less 20% is purchased by a merchant who sells them for $98. What is the merchant's rate of mark-up on selling price?

Custom Kitchens received an invoice dated November 17 from Idea Cabinets Ltd. for $7260 with terms 3/15, 1½/30, n/60. If Custom Kitchens made a payment of $4000 on December 2, what further payment on December 16 will settle the account?

Stanford Marketing Inc. received an invoice for $3,500 on August 19, with terms 1/10, n/30, EOM. What amount will reduce the outstanding balance to $2,000 if paid on September 9?

An irrigation pump is purchased for $5,402 less 40% and 25%. The pump is regularly priced at $3,100. Operating expenses are normally 26% of selling price. If the pump is sold at a discounted price of $2,635 then determine the profit or loss on product.

What is the net price of an item if the 17.5% trade discount is equal to $32.44?

Roller skates cost a retailer $120.00 less 20%, 10%. The retailer sold them for $150.00. What was the rate of mark-up on cost?

At the sale price, what was the rate of mark-up on cost?

Under what unusual circumstances will the rate of mark-up on cost equal the rate of mark-up on selling price?

What total amount must be paid on May 4 to settle invoices dated April 20 for $650, April 24 for $790, and April 30 for $465, all with terms 1½/10, n/30?

Specialty Builders Supply has two sources for the same power saw. Source A sells the saw at $196.00 less 20%, and Source B offers it at $186.60 less 16 $\frac{2}{3}$ %. Which source is less expensive?

How much gross profit did he make?

After all discounts, the net cost of a product was $399.43. The regular retail price of the product was $495.29. Operating expenses associated with the product were $39.94. If the product was sold to actually realize a 5.40% mark-up, then determine the discounted retail price.

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 is the selling price of the set?

A retailer buys T-shirts for $12.50. They are marked up to cover overhead of 40% of cost and a profit of 10% of cost. What is the rate of markdown if the T-shirts are sold at the break-even price?

An invoice for $2,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 18. What payment will settle the invoice on October 11?

Larissa bought summer dresses for her boutique at a cost of $80 each. The dresses were marked up by 50% of the selling price. At the end of August, three of the dresses were unsold, and Larissa reduced the price to $90 each. What was the rate of markdown for the remaining dresses?

Specialty Builders Supply has two sources for the same power saw. Source A sells the saw at $196.00 less 20%, and Source B offers it at $186.60 less 16 $\frac{2}{3}$ %. Which source is less expensive?

M. Studios buys cameras for $750, less 10%, plus an additional volume discount of 8% on orders of 200 or more. The list price of the cameras is based on operating expenses of 20% of cost and a desired profit of 15% of cost. The store manager has 10 cameras remaining from an order of 250, and has decided to sell them at the breakeven price. What will be the rate of markdown?

Sunrise Building Supply obtains 4- by 8-ft sheets of wallboard from Canadian Gypsum at $30 per sheet less 30% and 10%. The price is to be set to cover Sunrise's overhead of 20% of the selling price and to provide an operating profit of 18% of the selling price. What should be the retail price per sheet?