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

The Snow Store received an invoice for $6710.00 dated July 13, terms 5/10, 2/30, n/90, for a shipment of skis. The Ski Shop made two partial payments. a) How much was paid July 20 to reduce the unpaid balance to $4000.00? b) How much was paid on August 11 to reduce the outstanding balance by $1700.00?

Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for: All items are subject to trade discounts of 33.5%, 7.125%, 4%. a) What is the last day of the discount period? b) What is the amount due if the invoice is paid in full on September 6? 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?

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

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

At Rona's, a shed was sold for $888.00 during the end of the season clearance sale. If the clearance sale indicated a discount of 40%, what was the list price?

Sheldan Services sells oil at a markup of 46% of the selling price. If Sheldan paid $1.99 per litre of oil, a) what is the selling price per litre? b) what is the rate of markup based on cost?

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 Llama Wool Shoppe bought 225 wool overcoats for $16 875; 75 overcoats were sold at a markup of 160% of cost and 100 overcoats at a markup of 115% of cost; 20 of the overcoats were sold during a clearance sale for $130.00 each and the remaining overcoats were disposed of at 11% below cost. Assume all overcoats had the same cost. What was the markup realized on the purchase?

Christine Auto Sales and Service has an end of season sale on luxury cars. The original price was $67 998.00. The first discount is 10% and the second discount is 14%. Calculate the final price of the cars.

The Great Outdoors buys camping tents for $160.00 less 35% for buying them out of season from the manufacturer. The store's markup is 45% of the sale price. To attract customers, the store advertises all camping gear to be sold at a discount of 20% of the regular selling price. What is the regular selling price of the camping tents?

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?

Burke Company received an invoice dated November 18 for a shipment of goods received November 21. The invoice was for $9255.00 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?

A store advertises a discount of $54.72 on sandals. If the discount is 33.5%, for how much were the sandals sold?

A certain Canadian company received an invoice dated March 20 from their Cambodian supplier for the following shipment of goods that they received on April 1. The terms of the invoice stated 4/20, n/45 ROG and all items are subject to trade discounts of 15%, 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 April 19? 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 $25 000.00?

Dave and Lance buy pants for $32.75 less 12.75%, 18%. The pants are priced at a regular selling price to cover expenses of 35% of selling price and a profit of 32% of selling price. For a special weekend sale, shirts were marked down 15%. a) What was the operating profit or loss on the pants sold during the weekend sale? b) What rate of markup was realized based on the sale price?

The following invoices, all with terms 7.5/10, 2.5/30, n/45, were paid together on March 25. First invoice dated February 1 is for $2940.67; second invoice dated February 25 is for $4086.50; and the third invoice dated March 18 is for $9101.25. What amount was remitted?

Find the cost of an item sold for $4115 to realize a markup of 36% based on cost.

A skateboard costing $16.23 was marked up to realize gross profit of 50% of the selling price. a) What was the selling price? b) What was the gross profit as a percent of cost?

An invoice for $6200.00, dated May 28, 3/10, 1/20, n/60, was received on May 30. What payment must be made on June 5 to reduce the debt to $4760.00?

Sears is adding a new line of John Deere lawn mowers. The cost of each such lawn mower is $321.00 with an operating cost of adding this line is estimated to be 40% of the cost of each unit. If Sears matches the competition's retail price of $649 on each lawn mower, what will be the operating profit per unit?