Question 1

What total amount must be paid on June 19 to settle invoices dated June 1 for $600, June 5 for $300, and June 9 for $400, all with terms 3/10, 2/15, n/30?

Accepted Answer

The answer of What total amount must be paid on...

Question 2

Given the following notation for an invoice: 4/10,n/30 What is the discount period?

Accepted Answer

A)  4 days 
B)  10 days 
C)  20 days 
D)  30 days 
E)  None of these.

Question 3

A wholesaler sells a product for $4,637 less 36% and 19%. The retailer prices the product at 26.76% mark-up on cost. If operating expenses for the retailer are 25% of selling price, then determine the amount of operating expenses pertaining to the product.

Accepted Answer

The answer of A wholesaler sells a product for $4,637...

Question 4

A retailer pays $81 to a wholesaler for an article. The retail price is set using a rate of mark-up on selling price of 40%. To increase traffic to his store, the retailer marks the article down 20% during a sale. What is the sale price?

Accepted Answer

The answer of A retailer pays $81 to a wholesaler...

Question 5

A wholesaler offers discounts of 10%, 8%, and 5%. What is the single equivalent discount rate?

Accepted Answer

The answer of A wholesaler offers discounts of 10%, 8%,...

Question 6

A shirt costing $30 was marked up by 150% and then reduced by 50%. What was the sale price?

Accepted Answer

A)  $22.50 
B)  $60 
C)  $45 
D)  $37.50 
E)  $52.50

Question 7

Bulk baking sugar was sold in 30Kg packages at a cost of $64 less 30%, 12% and 3%. The retail price is based on a 35% mark-up on the selling price. The final selling price is $58.83.

Accepted Answer

A) True 
 B)False

Question 8

What was the sale price?

Accepted Answer

A)  $875.70 
B)  $868.75 
C)  $953.54 
D)  $525.42 
E)  $521.25

Question 9

Mavis Industries sells industrial fans that have a list price of $587.50. The trade discount that they offer to Don Ellis Construction is 37%. What is the net price?

Accepted Answer

A)  $217 
B)  $370 
C)  $551 
D)  $625 
E)  $806

Question 10

The rate of mark-up on selling price is 20% for an item that cost the retailer $84. What is the selling price?

Accepted Answer

A)  $67.20 
B)  $16.80 
C)  $58.00 
D)  $105.00 
E)  $26.00

Question 11

The Simcoe School Board has three invoices from Johnston Transport, all with terms 2/10, 1/20, n/60. Invoice 277, dated October 22, is for $14,200; Invoice 327, dated November 2, is for $8,600; and Invoice 341, dated November 3, is for $11,500. What total payment to Johnston on November 12 will settle all three invoices?

Accepted Answer

The answer of The Simcoe School Board has three invoices...

Question 12

Bosley's Pet Foods buys dog kibble for $19.50 per bag less 40%. The store's overhead is 33 $\frac{1}{3}$ % of the selling price, and the desired profit is 10% of the selling price.
a) At what price per bag should the dog food be sold?
b) At this price, what is the rate of mark-up on cost?
c) What is the break-even price?

Accepted Answer

The answer of Bosley's Pet Foods buys dog kibble for...

Question 13

Larissa sells coats for $200 less 30%. Kristina sells coats for $196 less 25% and 5%. What second discount would Larissa need to offer to match Kristina's net price?

Accepted Answer

The answer of Larissa sells coats for $200 less 30%....

Question 14

Digital Devices sets its retail prices on computers, monitors, and printers to generate a rate of mark-up on selling price of 30%. Overhead expenses normally work out to be 30% of cost. What is the operating profit on a monitor that costs $345?

Accepted Answer

The answer of Digital Devices sets its retail prices on...

Question 15

Central Ski and Cycle purchased 50 pairs of ski boots for $360 per pair less 33 $\frac{1}{3}$ % and 10%. The regular rate of mark-up on selling price on the boots is 40%. The store's overhead is 22% of the selling price. During a January clearance sale, the price was reduced to $270 per pair.
a) What was the rate of markdown for the sale?
b) What was the profit or loss on each pair of boots at the sale price?
c) At the sale price, what was the rate of mark-up on cost?

Accepted Answer

The answer of Central Ski and Cycle purchased 50 pairs...

Question 16

An invoice for $7,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3. If the company wants to reduce the outstanding balance to $4,000, how much should they pay on September 12?

Accepted Answer

A)  $3,000 
B)  $2,940 
C)  $2,955 
D)  $3,920 
E)  $3,940

Question 17

Office furniture is purchased for $4,685 less 48% and 21% from a distributor. The normal retail selling price on the furniture is $2,850. Operating expenses are 31% of retail selling price. Determine the profit or loss, if the furniture is sold at a discounted price of $2,422.50.

Accepted Answer

A)  $98.72 Loss 
B)  $98.72 Loss. 
C)  $385.60 Profit 
D)  $385.60 Loss 
E)  $41.90 Profit

Question 18

A retailer purchases mechanical equipment for $4,505 less 42% and 25%. The retail selling price is based on a 66.35% mark-up on cost. If the equipment is sold at a retail price of $2,771, determine the profit or loss realized.

Accepted Answer

The answer of A retailer purchases mechanical equipment for $4,505...

Question 19

Mack the Mover received a bill for $7,490 dated April 17 with payment terms of 4/20, n/90. What payment on May 4 would reduce the amount owing to $2,500?

Accepted Answer

A)  $4,990 
B)  $5,019 
C)  $5,992 
D)  $4,690 
E)  $4,790

Question 20

Omega Restaurant received an invoice dated July 22 from Industrial Kitchen Equipment for $3691, with terms 2/10, 1/20, n/45. Omega made payments of $1,100 on August 1, $900 on August 10, and $800 on August 31. What amount was still owed on September 1?

Accepted Answer

The answer of Omega Restaurant received an invoice dated July...

Exam 4: Mathematics of Merchandising