Question 1

A wholesaler sells a jacket that is normally $152 less 36%, 36% and 27%. If the mark-up on the jacket is 68%, then the selling price is $152.03

Accepted Answer

A) True 
 B)False

Question 2

If a grocery store's rate of mark-up on selling price of tomatoes is 55%, what is the rate of mark-up on cost of the tomatoes?

Accepted Answer

The answer of If a grocery store's rate of mark-up...

Question 3

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of mark-up on cost?

Accepted Answer

A)  57.33% 
B)  42.67% 
C)  174.42% 
D)  68.50% 
E)  74.42%

Question 4

On August 6, A&B Construction has three outstanding invoices payable to Excel Builder's Supply. Invoice 535, dated July 16, is for $3,228.56; Invoice 598, dated July 24, is for $2,945.31; and Invoice 678, dated August 3, is for $6217.69. All invoices have terms 4/10, 2/20, n/60. If A&B makes a $10,000 payment to Excel on August 6, what further payment on August 15 will settle the account? Note that Excel applies payments to the oldest invoices first.

Accepted Answer

The answer of On August 6, A&B Construction has three...

Question 5

Given the following:
 Determine:
a) The amount of mark-up.
b) The amount of operating (overhead) expenses.
c) The operating profit or loss.
d) The rate of mark-up on cost.
e) The rate of mark-up on selling price.

Accepted Answer

The answer of Given the following:
 Determine:
a) The amount of...

Question 6

Niagara Dairies gives convenience stores a trade discount of 24% on butter listed at $72.00 per case. What rate of discount will Silverwood Milk Products have to give on its list price of $74.50 per case to match Niagara's price to convenience stores?

Accepted Answer

The answer of Niagara Dairies gives convenience stores a trade...

Question 7

The 55% trade discount on an item is equal to $509. What is the net price?

Accepted Answer

A)  $355 
B)  $488 
C)  $667 
D)  $789 
E)  $416

Question 8

A wholesaler lists an item for $48.75 less 20%. What additional "special promotion" discount must be offered to retailers to get the net price down to $36.66?

Accepted Answer

The answer of A wholesaler lists an item for $48.75...

Question 9

An invoice for $40,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on March 28. What payment April 8 would reduce the outstanding balance to $20,000?

Accepted Answer

A)  $19,600 
B)  $20,000 
C)  $20,400 
D)  $20,600 
E)  $19,400

Question 10

The Annapolis Rotary Club sells hot dogs for $1.95 each at the annual Annapolis Fall Fair. The Rotary Club buys wieners at $3.95 per package of 10 wieners, and hot dog buns at $2.90 per dozen. It costs $78 for enough condiments for 1,000 hot dogs. What are the Rotary Club's rate of mark-up on selling price and rate of mark-up on cost?

Accepted Answer

The answer of The Annapolis Rotary Club sells hot dogs...

Question 11

Calculate the retail price of an item for which the retailer paid $120 and applied a mark-up on cost of 30% of cost.

Accepted Answer

A)  $150 
B)  $156 
C)  $168 
D)  $171 
E)  $189

Question 12

Sonic Boom obtained a sound system for $2,400 less 30% and 15%. The system was originally priced so that, when sold in a "20% off" sale, the store's overhead and operating profit represent 25% and 15%, respectively, of the sale price. In a Midnight Madness Special, the system was sold at a " $\frac{1}{3}$ off" special price.
a) What was the original "regular price"?
b) What was the profit or loss at the special price?

Accepted Answer

The answer of Sonic Boom obtained a sound system for...

Question 13

Fasbe Corporation purchases computers at a cost of $425 less 9%. Its policy is to mark-up the cost of the computers by 40% of the selling price. As well, operating expenses are 15% of cost. In order to breakeven, Fasbe has to markdown the selling price by 33%.

Accepted Answer

A) True 
 B)False

Question 14

An item is purchased for $300, less 35%, 20%, and 10%. The selling price is set so that estimated overhead expenses are 30% of the selling price, and operating profit is 25% of the selling price. What is the breakeven price of the item?

Accepted Answer

The answer of An item is purchased for $300, less...

Question 15

What single rate of discount would be equivalent to a series of 15% / 8% / 4%?

Accepted Answer

A)  48.0% 
B)  27.0% 
C)  24.9% 
D)  9.99% 
E)  21.4%

Question 16

An item sells for $85. The cost of the item is $50 and overhead expenses are estimated to be 25% of the selling price. What is the rate of mark-up on selling price of the item?

Accepted Answer

The answer of An item sells for $85. The cost...

Question 17

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?

Accepted Answer

A)  $192,000.00 
B)  $877,363.20 
C)  $191,557.63 
D)  $8773.63 
E)  $201,216.00

Question 18

What is the break-even selling price?

Accepted Answer

A)  $34.50 
B)  $54.00 
C)  $55.50 
D)  $60.00 
E)  $48.60

Question 19

The list price is $593 and the net price is $318. What is the trade discount rate?

Accepted Answer

A)  53.6% 
B)  27.5% 
C)  72.5% 
D)  46.4% 
E)  86.5%

Question 20

An invoice dated March 15 for $400 with terms 2/10, 1/20, EOM, was received on March 20. By what date should the invoice be paid to qualify for the 2% discount?

Accepted Answer

The answer of An invoice dated March 15 for $400...

Exam 4: Mathematics of Merchandising