Question 1

M Studios sells a camera listed at $400, less 25%. Todd's Factory sells the same camera for $325. What rate of markdown would Todd's have to offer to match the reduced price at M Studios?

Accepted Answer

A)  7.7% 
B)  8.3% 
C)  8% 
D)  7.5% 
E)  8.5%

Question 2

The Pro Shop at Sunny Lake Golf and Country Club prices its golf club sets to allow for overhead of 33 $\frac{1}{3}$ % of cost and profit of 20% of cost.
a) What is the regular selling price as a percentage of cost?
b) What discount rate can the Pro Shop offer to club members if it will accept half of the normal profit on member purchases?

Accepted Answer

The answer of The Pro Shop at Sunny Lake Golf...

Question 3

An invoice for $30,000 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 April 3. What payment April 14 would reduce the outstanding balance to $15,000?

Accepted Answer

A)  $14,550 
B)  $14,700 
C)  $15,000 
D)  $15,300 
E)  $15,450

Question 4

When does the credit period end?

Accepted Answer

A)  March 26 
B)  April 15 
C)  April 16 
D)  April 21 
E)  none of these

Question 5

Fulton Corporation purchases leather sofas for resale. The cost of each leather sofa is $1200 less 13%. Operating expenses are 10% of cost. Policy is to have a 15% mark-up on selling price. In order to breakeven Fulton has to sell each leather sofas at a markdown of 10%.

Accepted Answer

A) True 
 B)False

Question 6

After a trade discount of 37% a set of patio furniture is sold at a net price of $577. Calculate the list price.

Accepted Answer

A)  $941 
B)  $916 
C)  $790 
D)  $614 
E)  $364

Question 7

A retailer pays her supplier $240 for an item and applies a mark-up of 45% of cost. If she subsequently sells it during a "25% off" clearance sale, how much gross profit will she make?

Accepted Answer

A)  $0 
B)  $21 
C)  $33 
D)  $108 
E)  $261

Question 8

A pharmacy marked up its sunscreen to provide for overhead expenses of 40% of cost and a profit of 45% of cost. At the end of the summer, what rate of markdown can the pharmacy apply to the remaining inventory of sunscreen and still break even on sales at the reduced price?

Accepted Answer

The answer of A pharmacy marked up its sunscreen to...

Question 9

An invoice for $620 dated November 5 with payment terms of 3/10, 2/15, n/30, was paid in full on November 15. What was the amount paid?

Accepted Answer

A)  $18.60 
B)  $613.80 
C)  $620.00 
D)  $607.60 
E)  $601.40

Question 10

The distributor of Nikita power tools is offering a trade discount of 38% to hardware stores. What will be their cost to purchase a rotary saw listed at $135?

Accepted Answer

The answer of The distributor of Nikita power tools is...

Question 11

Rick's sells a motorcycle for $5000, less 10%. Todd's Motors sells the same motorcycle for $4250. What rate of markdown would Rick have to offer to match the price at Todd's?

Accepted Answer

A)  5.9% 
B)  5.6% 
C)  15% 
D)  10% 
E)  7.5%

Question 12

The evening news reports that the S&P/TSX Composite Index dropped 1.7% on the day to close at 13,646 points. Rounded to the nearest integer, how many points did the index fall on the day?

Accepted Answer

The answer of The evening news reports that the S&P/TSX...

Question 13

The net proceeds to the vendor of a house after payment of a 4.5% real estate commission were $275,995. At what price did the house sell?

Accepted Answer

The answer of The net proceeds to the vendor of...

Question 14

Prestige Clothiers' regular prices for menswear are set to provide a rate of mark-up on selling price of 40%. Overhead expenses are 30% of cost on average. What is the operating profit on a suit that sells for $495?

Accepted Answer

The answer of Prestige Clothiers' regular prices for menswear are...

Question 15

The Shoe Shop's normal rate of mark-up on selling price is 45%. What rate of markdown can the store offer on a pair of shoes normally priced at $140, and still realize a 20% rate of mark-up on cost at the sale price?

Accepted Answer

The answer of The Shoe Shop's normal rate of mark-up...

Question 16

A trade discount of 22.5% from the suggested selling price for a line of personal computers translates to a $337.05 discount. What net price will a retailer pay?

Accepted Answer

The answer of A trade discount of 22.5% from the...

Question 17

The net price of an item after a discount of 22% is $155.61. What is the (dollar) amount of the discount?

Accepted Answer

The answer of The net price of an item after...

Question 18

For a given dollar amount of mark-up, which will be the larger number: the rate of mark-up on cost or the rate of mark-up on selling price? Explain.

Accepted Answer

The answer of For a given dollar amount of mark-up,...

Question 19

A pair of noise-cancelling headphones retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 $\frac{2}{3}$ % of cost.
a) What is the largest amount of markdown that will allow the dealer to break even?
b) What rate of markdown will price the headphones at cost?

Accepted Answer

The answer of A pair of noise-cancelling headphones retails for...

Question 20

The evening news reports that the S&P/TSX Index dropped 0.9% on the day to close at 13,123 points. How many points did the index fall?

Accepted Answer