Exam 4: Mathematics of Merchandising

An invoice dated March 15 for $400 with terms 2/10, 1/20, ROG, was received on March 20. The goods were delivered on April 28. By what date should the invoice be paid to qualify for the 2% discount?

What single rate of discount would be equivalent to a series of 25%/18%/10%?

The cost of a sweater is $30. If the retailer wants a rate of mark-up on selling price of 50%, what is the selling price?

A payment of $500 on an invoice for $887 reduced the balance owed to $378.09. What cash discount rate was allowed on the $500 payment?

An item regularly priced at $89.00 is marked down to the cost price for a clearance sale. If the item cost the retailer $40.05, what is the rate of markdown?

The list price of a coat is $125.00. A retailer is able to purchase the coat for $106.25. What is the rate of trade discount?

An invoice for $2,956.60, dated February 2, has terms 2/15, 1/30, n/90. What three equal payments on February 17, March 2, and May 2 will settle the account?

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.

M Studios sells a camera lens for $300. During their annual August sale, the camera lens is reduced by 15%. What is the sale price?

Nagano Corporation purchased machinery for resale. The price was $4,450 less 42%, 16% and 1%. If there is a 66% mark-up on the selling price, determine 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.

Carl's Camping purchases high-end camping tents for $1,795 less 5%, 12% and 6%. Carl's operating expenses are 64% of cost, and Carl usually has a 54% mark-up on selling price. Given this information, operating expenses are $902.77

An invoice for $60,000 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 $40,000. What is their outstanding balance?

Martin Auto Parts charges Sam's Service Centre $386 for a rebuilt transmission that has a list price of $925. What is the rate of trade discount?

A 28% trade discount on a personal video recorder represents a discount of $136.92 from the suggested retail price. What is the net price to the buyer?

A payment of $727.50 was made on May 7 on an invoice totalling $3,000.00 dated April 27 with terms 3/10, 1/15, n/30. What amount is still owed?

After all discounts, the net cost of a product was $690.68. The regular retail price of the product was $946.23. Operating expenses associated with the product were $124.32. If the product was sold to actually realize a 16.45% mark-up, then determine the discounted retail price.

Green Thumb Nursery sells spreading junipers to the gardening departments of local grocery and building supply stores. The net price per tree is $27.06 after a trade discount of $22.14. What rate of trade discount is the nursery giving to retailers?

A 24% trade discount is equal to $365. What is the list price?

If the trade discount series is 40%/15%/10% and the net price is $555, what is the list price?