Exam 4: Mathematics of Merchandising

Calculate the net price of a vacuum cleaner that has a list price of $699 and is subject to a trade discount of 35%

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

Bastic Corporation purchased industrial furnaces for $4,015 less 36% and 24%. Determine the mark up on cost given a regular selling price of $2,852.

A trade discount series of 30%/15%/5% is offered on a product that has a list price of $8,900. What is the net price?

M Studios buys cameras at a unit cost of $225. Their operating expense is 30% per unit of the selling price, and their desired unit operating profit is 20% of the selling price. What is M Studios' rate of mark-up on cost?

M Studios buys cameras at a unit cost of $250. Their operating expense is 40% per unit of cost, and their desired unit operating profit is 30% of cost. What selling price should M Studios advertise for the camera?

An invoice for $75,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $50,000. How much is credited to their account?

What is the operating profit per pair?

A DVD player has a list price of $249 and is subject to a trade discount of 35%. Calculate the net price.

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

Loblaws purchases raisins at $85.75 per 25-kg box and then sells them in its bulk foods department for $0.59 per 100 g. What is Loblaws rate of mark-up on cost and rate of mark-up on selling price of the raisins?

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 break-even price of the set?

M Studios buys cameras at a unit cost of $140. Their operating expense is 40% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What is M Studios' rate of mark-up on selling price?

Next Designs sets its regular prices based on overhead expenses at 50% of cost and an operating profit of 40% of cost. What will be the operating profit (as a percent of cost) for clothing sold at a 20% discount?

Just Desserts buys cheesecakes from General Bakeries at $33.60 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at $6.50 per slice. Calculate the rate of mark-up on cost and the rate of mark-up on selling price.

"Paul's Guitars always sells for Less" is a music store in Acoostic, Alberta. Their overhead expenses are 15% of cost. They recently sold a guitar for $675 and the mark-up on that guitar was equal to 22% of the selling price. How much net profit did they realize on that sale?

Alym Corporation purchases appliances for resale. The average cost of each appliance is $790 less 33%. Operating expenses are 30% of cost. Policy is to have a 44% mark-up on selling price. In order to breakeven Fulton has to sell each appliance at a markdown of 28.70%.

A manufacturer of snowmobiles sells through distributors in some regions of the country, through wholesalers in other regions, and directly to retailers in its home province. The manufacturer gives a 25% trade discount to retailers, an additional 10% discount to wholesalers, and a further 7.5% discount to distributors. What net price does the manufacturer receive from each buying level on a snowmobile listed at $9,800?

What total amount must be paid on July 4 to settle invoices dated June 20 for $485, June 24 for $367, and June 30 for $722, all with terms 1½/10, n/30?

The rate of mark-up on cost of fresh peaches in a grocery store is 125% because of the large losses from spoilage and bruising while the peaches are in storage and on display. What is the rate of mark-up on selling price?