Exam 4: Mathematics of Merchandising

Ajax Corporation purchases business furniture at a cost of $500 less 18%. Its policy is to mark-up the cost of the furniture by 30% of the selling price. As well, operating expenses are 20% of cost. In order to breakeven, Ajax has to sell the furniture at a selling price of $450.

The retailer's cost is $86 and their rate of mark-up on selling price is 26%. Calculate the selling 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.

At its current price of $0.80 per share, the wholesale price of a commodity stock is down 73% from its price one year ago. What was that price?

In addition to the regular trade discount of 25% and a volume purchase discount of 8 $\frac{1}{3}$ % from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders placed in January. a) What is the net price after all three discounts on refrigerators listed at $1,195? b) What is the list price on an electric range whose net price works out to be $470.25? c) What single trade discount is equivalent to the three trade discounts? d) After the regular and volume discounts are both taken, what dollar amount of savings does the extra discount for January orders represent on a $1,000 list price item?

If Clarington Sporting Goods has to pay $88 for a pair of skates and then they apply a mark-up of 40% of cost, what is the selling price?

A high performance laptop is purchased for $4,434 less 43% and 19%. Operating expenses are normally 27% of the selling price of $3,379. Determine the profit or loss, if the laptop is resold at a discounted price of $2,872.15.

The net proceeds to the vendor of a house after payment of a 5.5% real estate commission were $160,555.50. At what price did the house sell?

The net price on an item is $327. The list price is $855. What is the rate of trade discount?

Peak Roofing sent Jensen Builders an invoice dated July 12 for $5,400 with terms 3/10, 1½/20, n/45. Jensen made a payment of $2,000 on July 20, and a second payment on August 1 that reduced the balance owed to $1,000. What was the size of the second payment?

What is the profit on a unit, which costs $21.60 and sells for $49.95, when operating expenses are expected to be 25% of cost?

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 rate of markdown of the set?

A college bookstore buys back good-condition textbooks for 45% off the retail price of new books. What will a student receive for a book currently selling at $104.50 new?

Is it possible for the rate of mark-up on selling price to exceed 100%? Explain.

Ballard Jewellers received an invoice dated August 22 from Safeguard Security Systems for $2,856.57 with terms 2½/10, 1/20, n/45. Ballard made payments of $900 on September 1, $850 on September 10, and $700 on September 30. What amount was still owed on October 1?

When does the discount period end?

London Drugs purchases digital cameras for $850 less 32% and 6%. Mark-up on cost is 38% and on average operating expenses are 18% of selling price. Determine the profit or loss realized per camera if they are put on sale for $662.34.

Village Foods employs a 35% rate of mark-up on cost of all dairy products. The store's overhead averages out to 20% of sales each month. What is the operating profit on a 4-litre pail of ice cream for which the wholesale cost is $4.65?

M Studios is ordering a new type of camera, which costs $315. M Studios allows 35% of cost for operating expenses and 20% of cost for profit. What selling price should M Studios advertise the camera at?

At its current price of $1.10 per share, the price of Apex Resources stock is down 78% from its price 1 year ago. What was that price?