Exam 5: Trade Discount, Cash Discount, Markup, and Markdown

A bed and bedding store sold a futon regularly priced for $330.00 for $240.00. The futon was originally purchased for $200.00 less 60%. The store's overhead is 25% of the regular selling price. a) Calculate the rate of markdown at which the futon was sold. b) Calculate the operating profit or loss at the sale price.

A gross profit of $181.00 is made on a sale. If the gross profit is 22.5% based on selling price, what was the cost?

Ward's Jewellers sells engagement rings for $2350.00 each less 20%. Its competitors across town offer the same ring for $2390.00 less 19%, 12%. What additional rate of discount must Ward's offer to meet the competitor's price?

A lathe is listed for $477.00 less 19 %, 9%, 7.7%. a) What is the net price? b) How much is the amount of discount allowed? c) What is the equivalent single rate of discount that was allowed?

Find the cost of a car sold for $25 000 to realize a markup of 8% based on cost.

Deep Discount Electronics lists an article for $127.00 less 12.5% and 11.5%. A competitor carries the same article for $137.00 less 15.5%. What further discount (correct to the nearest 1/10 of 1%) must the competitor allow so that its net price is the same as Deep Discount's?

What is the selling price of an item bought for $1420.00 if the markup based on selling price is 59%?

Bargain City bought desks for $175.00 less 29%, 21%, 13%. The store's overhead is 65% of cost and normal profit is 27% of cost. a) What is the regular selling price of the desks? b) At what price can the desks be put on sale so that the store incurs an operating loss of no more than 30% of the overhead? c) What is the maximum rate of markdown at which the desks can be offered for sale in part b)?

Home System Alarms buys wireless alarm systems for $4 000.00 less 30%, 10%. Expenses are 25% of the regular selling price and the required profit is 20% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 40% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 25%. What operating profit or loss does the store make on items sold during the sale?

RV World sells a make of motor home for $66 725. This regular selling price covers overhead of 12% of cost and a normal profit of 30% of cost. The cruisers were marked with a new regular selling price so that the company can offer a 25% discount while still maintaining its regular gross profit. At the end of the summer season, the motor home was marked down. The company made 20% of its usual profit and reduced the usual commission paid to the sales personnel by 27%. The normal commission accounts for 45% of the normal overhead. What was the rate of markdown?

The net price of an article is $84.62. What is the list price if a discount of 17% was allowed?

Uptown Goldsmith sells watches for $840.00 less 12.55%. Its competitors across the street offer the same type of watch for $860.00 less 13.25%, 11.5%. What additional rate of discount must Uptown offer to meet the competitor's price?

An appliance store sells electric kettles at a markup of 23.6% of the selling price. The store's margin on a particular model is $7.78. a) For how much does the store sell the kettles? b) What was the cost of kettles to the store? c) What is the percent markup based on cost?

A merchant buys an item listed at $69.00 less 34% from a distributor. Overhead is 44% of cost and profit is 37.5% of cost. For how much should the item be retailed?

Find the cost of an item that was sold for $4230.00 in order to realize a margin of 113% based on cost.

A natural gas oven cost a retailer $420.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 65% of the regular selling price. During the end-of-season sale, the barbecue is marked down 42%. a) What is the end-of-season sale price? b) What rate of markup based on cost will be realized during the sale?

Chris's Photographic Supplies sells a Minolta camera for $551.83. The markup is 72% of cost. a) How much does the store pay for this camera? b) What is the rate of markup based on selling price?

A wine merchant buys a case of wine for a listed price of $144.00 less 27% from a wine distributor. Overhead is 37% of cost and profit is 51% of cost. For how much should the item be retailed?

Big Boy Clothing Store lists an article for $99.00 less 20% and 15%. A competitor carries the same article for $115.00 less 18%. What further discount (correct to the nearest 1/10 of 1%) must the competitor allow so that its net price is the same as Deep Discount's?

A gross profit of $800.00 is made on a sale of services. If the gross profit is 15% based on the selling price, what was the cost?