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

HON received an invoice from its supplier on May 9 for $32 479.87 dated May 7 with terms 3/10, 1/20, n/60. HON pays $15,000 on May 11, $10 000 on May 13 and $2000 on May 21. What balance is still owed after May 30?

A retailer bought 10 000 units of cell phone cases for $55 000.00. On delivery, it was realized that not all the cases were of the same quality. Hence they were classified as high quality, average quality and poor quality. The 4200 high quality cases were sold at a markup of 120% of cost, the 2800 average quality cases were sold at a markup of 80% of the cost, and the remaining were sold at cost price. a) What is the unit selling price at which each of the three classifications were sold? b) If overhead is 18% of the cost, what is the amount of profit realized on the purchase?

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 certain home appliance is listed for $699.00 less 15 %, 8.5%. 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?

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 dealer bought personal computers for $2250.00 less 41%, 31%. They were sold for $1585.00. a) What was the markup as a percent of cost? b) What was the markup as a percent of selling price?

An invoice dated May 12, terms: 5/10, n/30 for $3000.00 was received by Bruce Distributors. a) What is the last day of the discount period? b) What is the amount due if the invoice is paid on June 5? c) What is the amount due if the invoice is paid on May 20?

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

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?

Encino Ltd. received an invoice dated February 16 for $520.00 less 25%, 8.75%, terms 3/15 E.O.M. A cheque for $159.20 was mailed by Encino on March 15 as part payment of the invoice. a) By how much did Encino reduce the amount due on the invoice? b) How much does Encino still owe?

What amount will reduce the amount due on an invoice of $9410.25 by $842.00 if the terms of the invoice are 5/10, n/30 and the payment was made during the discount period?

Cost of electricity to the grid is calculated in $ per MWh. On a typical day, the Darlington plant produces an average of 84 000 MWh. The OEB recently ruled that Darlington would receive $51 per MWh of electricity produced. The cost of fuel is $5 per MWh. Operations and maintenance costs are $37 per MWh. How much profit will the Darlington plant make in a year?

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

What is the cost of the perfume set that is sold for $165.00 with a margin of 215% based on cost.

An invoice for $4755.00, dated March 27, terms 3/10 E.O.M., was received March 29. What payment must be made on April 10 to reduce the debt to $1900.00?

A retail store realizes a gross profit of $62.67 if it sells an article at a margin of 32% of the selling price. a) What is the regular selling price? b) What is the cost? c) What is the rate of markup based on cost? d) If overhead is 21% of cost, what is the break-even price? e) If the article is sold at a markdown of 25%, what is the operating profit or loss?

What is the regular selling price of an item that cost $1345.00 if the markup is 27% of the regular selling price?

An invoice dated on March 31 was received on April 2. It was for 30 training manuals at $25.00 each and four posters at $40.00 each. The terms of the invoice were 5/10, 2/30, n/60. What is the invoice payment amount on April 3?

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?

Determine the equivalent single rate of discount for the following series of discounts. Discount of 20%, 15% and 5%.