Question 1

Cost plus markup is equal to the selling price.

Accepted Answer

A) True 
 B)False  True

Question 2

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?

Accepted Answer

A)  92.4% 
B)  7.6% 
C)  8.9% 
D)  91.1% 
A)  92.4% 
B)  7.6% 
C)  8.9% 
D)  91.1% C

Question 3

Markup may be expressed as:

Accepted Answer

A)  the difference between the selling price and the cost 
B)  all of these are appropriate expressions of markup 
C)  net profit 
D)  a percent 
A)  the difference between the selling price and the cost 
B)  all of these are appropriate expressions of markup 
C)  net profit 
D)  a percent A

Question 4

Manufacturers typically use a markup based on selling price.

Accepted Answer

A) True 
 B)False

Question 5

Cost is equal to markup plus selling price.

Accepted Answer

A) True 
 B)False

Question 6

James Page works in a local music store where he sells guitars for $196.60 each. If he maintains a markup of 50.4% on selling price, what is the cost of a guitar to James?

Accepted Answer

A)  $97.51 
B)  $295.69 
C)  $294.11 
D)  $99.09 
A)  $97.51 
B)  $295.69 
C)  $294.11 
D)  $99.09

Question 7

Sales minus the cost of merchandise and operating expenses is known as the markdown.

Accepted Answer

A) True 
 B)False

Question 8

A series of markups or markdowns may be used to determine the final selling price.

Accepted Answer

A) True 
 B)False

Question 9

The difference between the markup and the selling price is the markdown.

Accepted Answer

A) True 
 B)False

Question 10

The amount of markdown divided by the original selling price is the markdown percent.

Accepted Answer

A) True 
 B)False

Question 11

Original price $1489.00; markdown $163.79. Find the reduced price and the rate of the markdown.

Accepted Answer

A) Reduced (new) price = $163.79
Rate of markdown = 89% 
B) Reduced (new) price = $1652.79
Rate of markdown = 11% 
C) Reduced (new) price = $1325.21
Rate of markdown = 89% 
D) Reduced (new) price = $1325.21
Rate of markdown = 11% 
A) Reduced (new) price = $163.79
Rate of markdown = 89% 
B) Reduced (new) price = $1652.79
Rate of markdown = 11% 
C) Reduced (new) price = $1325.21
Rate of markdown = 89% 
D) Reduced (new) price = $1325.21
Rate of markdown = 11%

Question 12

A microwave was originally priced at $440.00. If it was subsequently reduced by 15%, the sales price would be $374.00.

Accepted Answer

A) True 
 B)False

Question 13

If markup is based on selling price, the selling price times 1 minus the markup percent on the selling price will equal the cost.

Accepted Answer

A) True 
 B)False

Question 14

The percent markup on the selling price is equal to the amount of markup divided by the selling price.

Accepted Answer

A) True 
 B)False

Question 15

If the cost and the percent of markup on cost are known, the selling price can be calculated.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would best represent a perishable?

Accepted Answer

A)  art work 
B)  a new car 
C)  investment products 
D)  vegetables 
A)  art work 
B)  a new car 
C)  investment products 
D)  vegetables

Question 17

A radio is sold for $16.00.This represents a markup of 30% on cost.  The cost of the radio is $44.80.

Accepted Answer

A) True 
 B)False

Question 18

Markdowns are typically used:

Accepted Answer

A)  all of these are appropriate uses of markdowns 
B)  when merchandise is priced too high to begin with 
C)  when merchandise goes out of style, or is seasonal 
D)  when pricing perishables 
A)  all of these are appropriate uses of markdowns 
B)  when merchandise is priced too high to begin with 
C)  when merchandise goes out of style, or is seasonal 
D)  when pricing perishables

Question 19

The amount by which the selling price of an item is reduced is referred to as the:

Accepted Answer

A)  margin 
B)  cost 
C)  reduced price 
D)  markdown 
A)  margin 
B)  cost 
C)  reduced price 
D)  markdown

Question 20

A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.

Accepted Answer

A)  25.8% 
B)  34.7% 
C)  46.9% 
D)  53.1% 
A)  25.8% 
B)  34.7% 
C)  46.9% 
D)  53.1%

Cost plus markup is equal to the selling price.

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?

Markup may be expressed as:

Manufacturers typically use a markup based on selling price.

Cost is equal to markup plus selling price.

James Page works in a local music store where he sells guitars for $196.60 each. If he maintains a markup of 50.4% on selling price, what is the cost of a guitar to James?

Sales minus the cost of merchandise and operating expenses is known as the markdown.

A series of markups or markdowns may be used to determine the final selling price.

The difference between the markup and the selling price is the markdown.

The amount of markdown divided by the original selling price is the markdown percent.

Original price $1489.00; markdown $163.79. Find the reduced price and the rate of the markdown.

A microwave was originally priced at $440.00. If it was subsequently reduced by 15%, the sales price would be $374.00.

If markup is based on selling price, the selling price times 1 minus the markup percent on the selling price will equal the cost.

The percent markup on the selling price is equal to the amount of markup divided by the selling price.

If the cost and the percent of markup on cost are known, the selling price can be calculated.

Which of the following would best represent a perishable?

A radio is sold for $16.00.This represents a markup of 30% on cost. The cost of the radio is $44.80.

Markdowns are typically used:

The amount by which the selling price of an item is reduced is referred to as the:

A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.

Review of Whole Numbers and Integers

Review of Fractions

Decimals

Banking

Equations

Percents

Business Statistics

Trade and Cash Discounts

Payroll

Simple Interest and Simple Discount

Consumer Credit

Filters

Exam 9: Markup and Markdown

Cost plus markup is equal to the selling price.

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?

Markup may be expressed as:

Manufacturers typically use a markup based on selling price.

Cost is equal to markup plus selling price.

James Page works in a local music store where he sells guitars for $196.60 each. If he maintains a markup of 50.4% on selling price, what is the cost of a guitar to James?

Sales minus the cost of merchandise and operating expenses is known as the markdown.

A series of markups or markdowns may be used to determine the final selling price.

The difference between the markup and the selling price is the markdown.

The amount of markdown divided by the original selling price is the markdown percent.

Original price $1489.00; markdown $163.79. Find the reduced price and the rate of the markdown.

A microwave was originally priced at $440.00. If it was subsequently reduced by 15%, the sales price would be $374.00.

If markup is based on selling price, the selling price times 1 minus the markup percent on the selling price will equal the cost.

The percent markup on the selling price is equal to the amount of markup divided by the selling price.

If the cost and the percent of markup on cost are known, the selling price can be calculated.

Which of the following would best represent a perishable?

A radio is sold for $16.00.This represents a markup of 30% on cost. The cost of the radio is $44.80.

Markdowns are typically used:

The amount by which the selling price of an item is reduced is referred to as the:

A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.

Review of Whole Numbers and Integers

Review of Fractions

Decimals

Banking

Equations

Percents

Business Statistics

Trade and Cash Discounts

Payroll

Simple Interest and Simple Discount

Consumer Credit

Filters