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

Sean's Hardware Supplies sells a snowblower for $750.99. The markup is 70% of cost. a) How much does the store pay for this snowblower? b) What is the rate of markup based on selling price?

Sepaba Ltd. received an invoice dated November 20 from Wallis Specialties of Germany with terms 5/20, n/45 for: 10 vases at $35.00 each; 20 figurines at $50.50 each; 40 glass flutes at $80.50 each. All items are subject to trade discounts of 30%, 10%, 5%. a) What is the last day of the discount period? b) What is the amount due if the invoice is paid in full on December 8? c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

What amount must be paid to settle an invoice of $1200.00 dated November 28, terms 3/10, n/30 if the invoice is paid on December 3?

Deep Discount Audio buys home theatre systems for $3 895 less 29%, 15%. Expenses are 30% of the regular selling price and the required profit is 41% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 35% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 40%. What operating profit or loss does the store make on items sold during the sale?

On June 18, an invoice dated June 18 for $6250.00 less 17%, 16%, terms 5/10, n/30, was received by Nova Distributors. a) What is the last day of the discount period? b) What is the amount due if the invoice is paid in full within the discount period?

What is the list price of an article that is subject to discounts of 23.25%, 11.2%, 4% if the net price is $664.88?

Lumber Queen sells 4x8 sheets of drywall for $8.00 each less 14%. Its competitors across town offer the same drywall for $12.00 less 30%, 20%. What additional rate of discount must Lumber King offer to meet the competitor's price?

Fred's Electric Supplies sells an electric women's shaver for $112.83. The markup is 39% of cost. How much does the store pay for this electric razor?

A bike shop reduces the price of a bike for quick sale from $455.00 to $395.00. Compute the markdown correct to the

A fierce price war has broken-out over gas. Super-Save offered pre-price war gas at 73.9 cents per litre with 5% Super-Save discount. Cooperative gas was 75.9 cents per litre and they offered a 3%, 10% discount. What additional discount must Super-Save offer to beat their competitor's price by 2%?

A calculator that cost $48.50 was sold for $65.96. Calculate the rate of mark-up based on cost price.

A retailer paid $59.23 for a set of utensils. Overhead is 14% of the regular selling price and profit is 11% of the regular selling price. During a clearance sale, the set was sold at a markdown of 17%. What was the operating profit or loss on the sale?

A power ice auger cost a retailer $327.00 less 13%, 17%, 2.25%. It carries a regular selling price on its price tag at a markup of 94% of the regular selling price. During the end-of-season sale, the power ice auger is marked down 30%. What is the end-of-season sale price?

The Local Dollar Store received an invoice for $8 500.00 dated January 31, terms 5/10, 2/30, n/90, for a shipment of skis. The Local Dollar Store made two partial payments. a) How much was paid on February 7 to reduce the unpaid balance to $5000.00? b) How much was paid on March 1 to reduce the outstanding balance by $1500.00? c) What was the outstanding balance on the account on March 2? d) How much did the Local Dollar Store save by taking the advantage of the cash discounts?

Burke Company received an invoice dated November 18 for a shipment of goods received November 21. The invoice was for $9 255.00 less 40%, 13.375% with terms 5/10, 3/20, n/45. How much must Burke pay on December 2 to reduce its debt a) by $2000.00? b) to $2000.00? c) if Burke Company makes a partial payment of $4000 on November 25, how much should be credited to the account

The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?

A cheese merchant buys a case of cheese for a listed price of $96.00 less 16.5% from a cheese distributor. Overhead is 17% of cost and profit is 61% of cost. For how much should the item be retailed?

The following invoices, all with terms 5/10, 2/30, n/60, were paid together on March 15. Invoice No. 457 dated January 30 is for $294.67; invoice No. 542 dated February 15 is for $486.50; and invoice No. 877 dated March 10 is for $911.25. What amount was remitted?

Mike's Suits and Accessories purchased men's shoes for $97.00 less 25.6%. The store operates at a normal gross profit of 25% of regular selling price. The owner marks all merchandise with new regular selling prices so that the store can offer a 20% discount. What is the new regular selling price?

A bicycle at Janice's sport shop, costing $108.50 was marked up to reflect 40% of the cost price. Calculate the selling price.