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

A discount store lists an article for $875.00 less 25% and 20.5%. a competitor carries the same article for $847.90 less 21.5%. What further discount (correct to the nearest of 1%) must the competitor allow so that its net price will be the same as that of the discount store?

A 7.5% discount on a microwave at Lowes amounted to $75. Calculate the net price.

An invoice dated on September 30 was received on October 2. It was for 4 pairs of in-line skates at $125.00 each and two pairs of gel roller blades at $110.50 each. The terms of the invoice were 5/10, 2/30, n/60. What is the invoice payment amount on October 27?

A clothing retailer buys winter coats from one of its suppliers for $67.50. The regular selling price of the coats includes operational expenses of 46% of the selling price and a profit of 30% of the selling price. Due to an unexpected warm winters, the sales have been extremely slow. With spring products arriving in the warehouse, the retailer decides to mark down this line of coats by 70% to clear out the inventory. What is the operating profit or loss on the coats sold during the promotional sale?

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 which results into a break-even. Calculate the markdown.

A 47% discount allowed on an article amounts to $3.57 What is the net price?

Overstock.com advertised a discount of $1250 on one of the 3D printers. If the discount is 30.7%, how much was the printer sold for? Round the answer to the nearest dollar value.

The Exotic Import Company received an invoice dated January 5 for a shipment of goods received January 11. The invoice was for $5525.00 less 40%, 8% with terms 3/20 R.O.G. How much must Exotic Import pay on January 20th to reduce its debt a) by $3000.00? b) to $3000.00?

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?

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?

The Amusement Park bought 1200 t-shirts auctioned off en bloc for $6600.00. This means that each t-shirt has the same cost. On inspection, the t-shirts were classified as normal quality, seconds, and substandard. The 640 normal quality t-shirts were sold at a markup of 95% of cost, the 330 t-shirts classified as seconds were sold at a markup of 35% of cost, and the t-shirts classified as substandard were sold at 47% of their cost. What was the unit price at which each of the three classifications was sold?

A toy shop reduces the price of a popular toy from $89.99 to $69.99 to increase their sales compared their online competition. a) What is the markdown amount in this case? b) What is the rate of markdown?

For Your Eyes Only Company bought plasma screen TV sets for $11 585 less 4.5%, 3.2%. Overhead is 19% of regular selling price and required profit is 31% of regular selling price. The gas plasma TV sets were marked at a new regular selling price so that the store was able to advertise a discount of 10% while still maintaining its margin. To clear the inventory, the remaining TV sets were marked down 15%. What operating profit or loss is realized at the clearance price?

A gross profit of $96.00 is made on a sale. If the gross profit was 52% based on selling price, what was the cost?

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?

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?

Kaz purchases an article with a net price of $114.54 after a discount of 17% was allowed. Calculate the list price.

An invoice for $5999.00, dated June 27, terms 2/10 E.O.M., was received June 30. What payment must be made on July 10 to reduce the debt to $2000.00?

Determine the equivalent single rate of discount for each of the following series of discounts. a) 18 %, 4.5% b) 36%, 7 %, 1.5%

Christine's pet shop buys cat litter for $15.00 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20 % of cost. a) For how much should a bag be sold? b) Calculate the amount of markup.