Question 1

An article cost $4270.00 and was sold for $9947.00. What was the percent markup based on selling price (correct to the

Accepted Answer

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Question 2

Lumber Queen sells 4x8 sheets of drywall for $8.00 each less 14%. Its competitors across town offer the same drywall for $12.00 less 30%, 20%. What additional rate of discount must Lumber King offer to meet the competitor's price?

Accepted Answer

A)  2.33% 
B)  25% 
C)  36% 
D)  23% 
E)  233%

Question 3

What rate of discount has been allowed if an item that lists for $720.00 is sold for $681.57?

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Question 4

A cheese merchant buys a case of cheese for a listed price of $96.00 less 16.5% from a cheese distributor. Overhead is 17% of cost and profit is 61% of cost. For how much should the item be retailed?

Accepted Answer

A)  $149.10 
B)  $102.55 
C)  $144.22 
D)  $132.45 
E)  $142.69

Question 5

A big electronics retailer bought 15" tablets for $750.00 less 21%. He sold them for $1550.00.

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Question 6

An item that cost the dealer $2331.00 less 14%, 12.25% carries a price tag at a markup of 70% based on cost. For quick sale the item was reduced 30%. What was the sale price?

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Question 7

An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The dealer's overhead is 17% of the regular selling price and the answering machine was cleared out for $175.45.
a) What is the regular markup based on selling price?
b) What was the rate of markdown at which the answering machine was sold?
c) What was the operating profit or loss?
d) What rate of markup based on cost was realized?

Accepted Answer

The answer of An answering machine cost a dealer $220.00...

Question 8

A hitch and trailer listed at $2149.00 has a net price of $1360.00. What is the rate of discount?

Accepted Answer

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Question 9

The Alpaca Wool Shoppe bought 150 scarves for $4150.00; 50 scarves were sold at a markup of 175% of cost and 30 scarves at a markup of 125% of cost; 40 of the scarves were sold during a clearance sale for $35.50 each and the remaining Scarves were disposed of at 15% below cost. Assume all scarves had the same cost.
a) What was the markup realized on the purchase?
b) What was the percent markup realized based on cost?
c) What was the gross profit realized based on selling price?

Accepted Answer

The answer of The Alpaca Wool Shoppe bought 150 scarves...

Question 10

A gross profit of $57.75 is made on the sale of a dress. If the gross profit is 33.75% based on cost, what was the selling price? Round your answer to the nearest dollar value.

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Question 11

The Nursery bought 800 plants auctioned off en bloc for $5550.00 This means that each plant has the same cost. On inspection, the plants were classified as normal quality, seconds, and substandard. The 420 normal quality plants were sold at a markup of 85% of cost, the 290 plants classified as seconds were sold at a markup of 21% of cost, and the plants classified as substandard were sold at 83% of their cost.
a) What was the unit price at which each of the three classifications was sold?
b) If overhead is 23% of cost, what was the amount of profit realized on the purchase?
c) What was the average rate of markup based on the selling price at which the plants were sold?

Accepted Answer

The answer of The Nursery bought 800 plants auctioned off...

Question 12

To increase their sales compared their online competition, a toy shop marks down the regular price of $49.99 of a popular toy by 25%.
a) What is the markdown amount in this case?
b) What is the new (sale) price of the toy?

Accepted Answer

The answer of To increase their sales compared their online...

Question 13

A natural gas oven cost a retailer $420.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 65% of the regular selling price. During the end-of-season sale, the barbecue is marked down 42%.
a) What is the end-of-season sale price?
b) What rate of markup based on cost will be realized during the sale?

Accepted Answer

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Question 14

Home System Alarms buys wireless alarm systems for $4000.00 less 30%, 10%. Expenses are 25% of the regular selling price and the required profit is 20% of the regular selling price. All merchandise is marked with a new regular selling price so that the store can advertise a discount of 40% while still maintaining its regular markup. During the annual clearance sale, the new regular selling price of unsold items is marked down 25%. What operating profit or loss does the store make on items sold during the sale?

Accepted Answer

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Question 15

A dollar store bought 1000 pair of socks auctioned off en bloc for $2000.00. This means that each pair of socks has the same cost. On inspection, the socks were classified as normal quality, seconds, and substandard. The 600 normal quality socks were sold at a markup of 90% of cost, the 300 pair of socks classified as seconds were sold at a markup of 30% of cost, and the socks classified as substandard were sold at 60% of their cost. What was the unit price at which each of the three classifications was sold?

Accepted Answer

A)  $3.80,$2.60, $1.20 
B)  $3.80,$2.60, $3.20 
C)  $3.80,$3.20, $2.60 
D)  $3.80,$1.20, $2.60 
E)  $3.80,$1.20, $1.20

Question 16

The Local Dollar Store received an invoice for $8500.00 dated January 31, terms 5/10, 2/30, n/90, for a shipment of skis. The Local Dollar Store made two partial payments.
a) How much was paid on February 7 to reduce the unpaid balance to $5000.00?
b) How much was paid on March 1 to reduce the outstanding balance by $1500.00?
c) What was the outstanding balance on the account on March 2?
d) How much did the Local Dollar Store save by taking the advantage of the cash discounts?

Accepted Answer

The answer of The Local Dollar Store received an invoice...

Question 17

A furniture store sold a bed regularly priced for $990.00 for $720.00. The bed was originally purchased for $600.00 less 40%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the bed was sold.
b) Calculate the operating profit or loss at the sale price.

Accepted Answer

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Question 18

A fridge was sold during a clearance sale for $657.00. If the fridge was sold at a discount of 24%, what was the list price?

Accepted Answer

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Question 19

Kalotyre retails its 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 operating profit per tire.

Accepted Answer

A)  $38.56 
B)  $17.94 
C)  $10.23 
D)  $59.18 
E)  $73.98

Question 20

Daffodil Supplies received a partial payment of $2300.50 from J&K Landscape company on June 7 on an invoice of $7539 dated May 12, terms 5/10, 3/30, n/60.
a) For how much should the Daffodil Supplies credit J&K Landscape's account for the payment?
b) How much does J&K Landscape still owe on the invoice?

Accepted Answer

The answer of Daffodil Supplies received a partial payment of...

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