Exam 4: Mathematics of Merchandising

The payment terms on a $2,433 invoice dated May 6 are 2/10, n/30. What payment on May 15 would pay off the debt?

If a payment of $900 is made on March 20, what will be the new balance?

Benson's SuperMart sets retail prices so that the mark-up on everything they sell is 35% of the selling price. What price would Benson set on an item which costs him $3.28?

An invoice for $7,000 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 25. A payment is sent on October 10 for $3,000. What is the outstanding balance?

An invoice for $45,780 has terms of 3/15, n/90. The date of the invoice is March 10. What payment on March 23 would be enough to settle the debt?

Furniture Warehouse bought freezers for $1,800 less 33 $\frac{1}{3}$ % and 5%. The store's overhead works out to 30% of cost. The freezers are initially priced so that a profit of 16⅔% of cost will be realized when a freezer is sold at a "15% off" price. a) What is the initial full rate of mark-up on cost? b) During its Scratch-and-Save sale, customers qualify for an extra discount of either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25%, respectively. What is the store's profit or loss per freezer at each of these discounts?

Calculate the trade discount rate on an item that lists for $1,950 and has a net price of $1,433.

A dining set was purchased by Sears for $903 less 28% and 6%. Sears marks up this product by 38% of cost. If operating expenses amounted to $67.23, then determine the operating expenses as a percentage of selling price.

An invoice for $50,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 17. The shipment of goods was received on March 29. What payment would settle the invoice on April 9?

An item purchased for $150, less 25%, was marked up by 40% of cost. The item was then reduced 30%. What was the sale price?

Is it possible for the rate of mark-up on cost to exceed 100%?

The difference between the list price and the net price on a motorbike is $772. The rate of trade discount is 27%. What is the list price?

Stanford Marketing Inc. received an invoice for $3,500 on August 19, with terms 2/10, n/30, ROG, for goods received October 15. What amount will reduce the outstanding balance to $2,000 if paid on October 25^th?

Best Buy Entertainment can obtain Panasonic Blu-ray players for $134 less a trade discount of 35%. A comparable Samsung model is available for $127 less a discount of 30%. Which DVD player has the lower net cost? How much lower?

When does the credit period end?

A bedroom suite costs Town & Country Furniture $2,500 less 30% and 15%. The normal rate of mark-up on cost is 90%. The suite is marked down 30% in a Mid-Summer sale. What is the sale price?

After discounts of 20% and 10%, an item sold for $115.50. What was the amount of the discount?

Mining equipment was purchased at a wholesale price of $1,365 less 35% and 5%. The retail price is based on a 31% mark-up on cost. The retailer's operating expenses is approximately 10% of the selling price. Determine the profit or loss realized if the product is put on sale for $938.56.

A sweater sells for $130.50. Overhead expenses are 25% of cost and operating profit is 20% of cost. What rate of markdown will price the sweater at the break-even price?

A retailer marks up all cosmetic products to allow for overhead expenses of 30% of cost and operating profit of 40% of cost. If a product does not sell within two months, the product is marked down to its break-even price. What rate of markdown is the retailer using?