Exam 4: Mathematics of Merchandising

Marco purchased a high-end stove for $5,267 less 53% and 18%. The overhead rate is 30% of the regular selling price of $3,080. Unfortunately, the stove was dented in his store, so it had to be resold at a loss. During a midnight madness sale, Marco sold the stove for $2,618.Determine the rate of mark-down on the regular selling price.

A retailer sells all goods on a rate of mark-up on selling price of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?

If the trade discount series is 30% / 20% / 4% and the net price is $377, what is the list price?

Fine's Furniture pays the manufacturer $200 for a reclining chair. They set a retail price to cover overhead expenses of 22% of cost plus profit. If they sell the chair for $399 what is their rate of profit expressed as a percentage of cost?

A $7,350 invoice dated August 3 has payment terms of 4/10, 2/30, n/60. If the invoice is paid on August 20 how much must the payment be?

A 12½% discount allowed on an article amounted to $25.50. What was the list price?

Home Workshop Supply obtains table saws for $720 less 33 $\frac{1}{3}$ % and 15%. A saw regularly priced at $750 was sold for $450. The shop's overhead is 22% of the regular selling price. a) What was the markdown rate on the saw? b) What was the profit or loss on the sale of the saw? c) What rate of mark-up on cost was realized at the reduced price?

A florist buys potted poinsettias from a nursery at $15 each less 40% and 10%. The florist prices her stock to allow for overhead of 55% of cost and an operating profit of 20% of the selling price. At what price should she sell the poinsettias?

Given the following notation for an invoice: 4/10,n/30 What is the discount?

The cost of a coat is $80. If the retailer wants a rate of mark-up on selling price of 40%, what is the amount of mark-up on cost?

An invoice for $2,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. A payment of $1500 is made on October 20. How much is credited to the account?

An invoice for $25,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. A payment of $15,000 is made on March 26. What is the outstanding balance?

What payment must be made on April 5 on an invoice for $2,250, dated March 16 with terms 2/10, 1/20, n/30 in order to reduce the outstanding balance to $1,500?

Calculate the net price of a snow blower that has a list price of $1,450 and is subject to a trade discount of 27.5%.

Fixtures were purchased at a cost of $615 less 25% and 8%. The net discount amounts to 31%.

Parker Transport received a bill for $11,400 dated June 8 with payment terms of 3/15, n/45. What payment on June 22 would reduce the amount owing to $4,000?

A shovel costing $8.50 in August was marked up by 200%. In April of the following year, it was reduced by 80%. What was the sale price?

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.

An invoice for $5,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3^rd. A payment of $2,000 is made on September 12^th. How much is credited to the account?

A retailer sells all goods on a rate of mark-up on cost of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?