Exam 6: Trade Discounts, Cash Discounts, Markup, and Markdown

An article that costs $542.50 was marked up to reflect 30% of the selling price. Calculate the selling price.

Kia Soul is sold at an MRSP of $18 500. In May 2013, Kia offered two incentives to its customers. The first incentive was cash back of $2000 on the final sale price, which includes 13% HST. The other one was no HST MRSP. Which incentive resulted in lesser cost to the customer?

United Furniture purchased RF42 model refrigerators from Samsung for $2751 each in 2012. The store marked up the price by 30% of the regular selling price. The store's overheads were estimated to be 10% of the regular selling price of each refrigerator in 2012. Following Christmas, Samsung introduced a new model. In order to make space for the new model, United Furniture decided to sell the RF42 model refrigerators at a markdown of 25%. How much was the operating profit or loss on each refrigerator as a result of the sale?

The net price of a tennis racket is $79.99. What is the list price if a discount of 35% was allowed?

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?

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?

At Lowe's, each contractor receives 5% discount for his purchases. A contractor buys a saw which is listed at $149 less 10%. What is the actual price paid by the contractor?

An invoice for $2600.00, dated June 2, with terms 3/10, 1/30, n/60, was received on June 10. What payment must be made on June 11 to reduce the debt to $1250?

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?

Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for $205.00.

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?

The net price of an article is $125.46. What is the list price if a discount of 38% was allowed?

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 retailer buys a computer for resale at $500.00 less 35%, 10%. The store marks the merchandise to cover expenses of 15% of the regular selling price and a net profit of 24% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 25%. What is the operating profit or loss?

A microwave oven costs a retailer $220.00. It carries a regular selling price on its price tag at a markup of 60% of the regular selling price. During a special promotion, the oven is marked down 30%. What is the sale price?

A drone at Future-is-Yours store, costing $1050.00 was marked up to reflect 70% of the selling price. Calculate the selling price.

DeSomma and Brown received an invoice for $14 520 dated November 29, terms 5/20, n/45, from Happy Valley Winery for a truckload of grapes received December 17. DeSomma and Brown made a partial payment of $4955.00 on December 12. a) By how much did DeSomma and Brown reduce the amount due on the invoice? b) How much does DeSomma and Brown still owe?

The net price of an article is $272.20 after discounts of 21% and 16% have been allowed. What was the list price?

Murray's Pro Shop purchased sets of golf clubs for $710.00 less 22%, 17%, and 19%. Expenses are 19% of the regular selling price and the required profit is 19% of the regular selling price. The store decided to change the regular selling price so that it could offer a 47% discount without affecting its margin. At the end of the season, the unsold sets were advertised at a discount of 60%. What operating profit or loss was realized on the sets sold at the end of the season?

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%?