Question 1

Kalotyre sells Bridgestone tires at $141.67 each. They purchase the tires from the factory for $103.11 each. Overhead expenses are 20% of the selling price. Determine the rate of markup on the selling price and the cost price?

Accepted Answer

The answer of Kalotyre sells Bridgestone tires at $141.67 each....

Question 2

Honest Ed sells a product for $225.00 less 7.5% and 5%. Factory Direct carries the same product for $209.99 less 5%. What further discount must Factory Direct allow so that its net price will be the same as that of Honest Ed?

Accepted Answer

The answer of Honest Ed sells a product for $225.00...

Question 3

Ice-Time purchased hockey skates for $220.00 less 12% and 7%. Expenses are 22% of the cost and the required profit is 45% of the cost. At the end of the winter season, the unsold skates were advertised at a discount of 50%. What operating profit or loss was realized on the sets sold at the end of the season?

Accepted Answer

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Question 4

What single discount rate is equivalent to multiple discounts of 13% and 25%?

Accepted Answer

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Question 5

A store has an end of season sale on snow blowers. The original price was $679.98. The first discount is 10% and the second discount is 14%. What is the final sale price of the snow blowers?

Accepted Answer

A)  $526.30 
B)  $517.54 
C)  $541.01 
D)  $540.86 
E)  $529.40

Question 6

Compute the rate of discount allowed on a cordless drill that lists for $149.99 and is sold for $79.99.

Accepted Answer

The answer of Compute the rate of discount allowed on...

Question 7

A bed and bedding store sold a futon regularly priced for $330.00 for $240.00. The futon was originally purchased for $200.00 less 60%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the futon was sold.
b) Calculate the operating profit or loss at the sale price.

Accepted Answer

The answer of A bed and bedding store sold a...

Question 8

Fresh Co advertises to price match its competitors. This week Fresh Co sells grapes for $3.99 per pound. No Frills has sale on grapes and is selling at $2.69 per pound. Calculate the rate of markdown for Fresh Co for the grapes to price match competition.

Accepted Answer

A)  43.8% 
B)  48.3% 
C)  32.6% 
D)  25.4% 
E)  0%

Question 9

A tire dealer bought tires from a wholesaler at $75.00 dollars each and sold the tires at a mark-up of 25% of cost.
a) Calculate the selling price of the tires.
b) Calculate the rate of markup based on the selling price.

Accepted Answer

The answer of A tire dealer bought tires from a...

Question 10

What is the list price of an article that is subject to discounts of 23.25%, 11.2%, 4% if the net price is $664.88?

Accepted Answer

The answer of What is the list price of an...

Question 11

Alpha computing is importing mother boards at a unit cost of $178. Alpha estimates that operating expenses per unit are 35% of cost. What should the selling price be if the desired operating profit per unit is 30% of the cost?

Accepted Answer

A)  $115.70 
B)  $240.30 
C)  $231.40 
D)  $293.70 
E)  $178

Question 12

OPG received an invoice from its supplier on May 9 for $32 479.87 dated May 7 with terms 3/10, 1/20, n/60. OPG always makes full payment on the first working day 25th of a given month. What payment will settle the account?

Accepted Answer

The answer of OPG received an invoice from its supplier...

Question 13

Barmby's Aquarium Supplies purchased sets of aquariums for $315.00 less 10%, 12%. Expenses are 21% of the regular selling price and the required profit is 42% of the regular selling price. The store decided to change the regular selling price so that it could offer a 20% discount without affecting its margin. During the Christmas season, the unsold sets were advertised at a discount of 40%. What operating profit or loss was realized on the sets sold during the Christmas season?

Accepted Answer

A)  $112.83 
B)  $114.62 
C)  $112.11 
D)  $110.85 
E)  $123.49

Question 14

What is the list price of an article that is subject to discounts of 40.5%, 10.4%, 5.0% if the net price is $650.00?

Accepted Answer

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Question 15

Deep Discount Electronics lists an article for $127.00 less 12.5% and 11.5%. A competitor carries the same article for $137.00 less 15.5%. 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?

Accepted Answer

The answer of Deep Discount Electronics lists an article for...

Question 16

The regular selling price of merchandise sold in a store includes a margin of 62% based on selling price. During a sale, an item which cost the store $231.25 was marked down 47%. For how much was the item sold?

Accepted Answer

The answer of The regular selling price of merchandise sold...

Question 17

Sepaba Ltd. received an invoice dated November 20 from Wallis Specialties of Germany with terms 5/20, n/45 for:
  All items are subject to trade discounts of 30%, 10%, 5%.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full on December 8?
c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

Accepted Answer

The answer of Sepaba Ltd. received an invoice dated November...

Question 18

A gross profit of $800.00 is made on a sale of services. If the gross profit is 15% based on the selling price, what was the cost?

Accepted Answer

The answer of A gross profit of $800.00 is made...

Question 19

A television set was sold during a clearance sale for $299.00. If the television was sold at a discount of 70%, what was the list price?

Accepted Answer

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Question 20

A piece of jewellery costing $150 was marked up by 40% of the selling price. During the stores silver jubilee sale, the selling price was reduced to $175. What was rate of markdown during the sale?

Accepted Answer

A)  40% 
B)  16.7% 
C)  14.3% 
D)  30% 
E)  42.9%

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