Question 1

Markup is sometimes referred to as net profit.

Accepted Answer

A) True 
 B)False

Question 2

If patio furniture costs $500.00 and sells for $550.00, the percent markup based on selling price is 10%.

Accepted Answer

A) True 
 B)False

Question 3

An item has a 41.1% markup based on selling price. What is the equivalent markup percent based on the cost?

Accepted Answer

A)  69.8% 
B)  30.2% 
C)  29.1% 
D)  70.9% 
A)  69.8% 
B)  30.2% 
C)  29.1% 
D)  70.9%

Question 4

The cost of a fur coat, assuming a $311.50 markup, which is a 35% markup on selling price, is $202.48.

Accepted Answer

A) True 
 B)False

Question 5

The selling price of merchandise minus the cost equals the markdown.

Accepted Answer

A) True 
 B)False

Question 6

An item sells for $48.60 and is marked up 20% on selling price.The cost is $38.88.

Accepted Answer

A) True 
 B)False

Question 7

When comparing markup based on cost to markup based on selling price:

Accepted Answer

A)  none of these 
B)  all else being equal, markup based on cost will result in a higher markup rate 
C)  markup based on cost provides more profit for the business 
D)  when using markup based on selling price, cost can never be determined 
A)  none of these 
B)  all else being equal, markup based on cost will result in a higher markup rate 
C)  markup based on cost provides more profit for the business 
D)  when using markup based on selling price, cost can never be determined

Question 8

When calculating a markup based on cost, the sale price is always equal to 100%.

Accepted Answer

A) True 
 B)False

Question 9

Murry, a retailer, marks up hardware 28% on the selling price. If an electric saw costs $324.00, the selling price would be $414.72.

Accepted Answer

A) True 
 B)False

Question 10

An item is originally priced to sell for $175 and is marked down 20%. The store takes off an additional 20%, and a customer has a coupon for 10%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.

Accepted Answer

A)  0.576; 42.4% 
B)  0.55; 50% 
C)  0.5; 55% 
D)  0.424; 57.6% 
A)  0.576; 42.4% 
B)  0.55; 50% 
C)  0.5; 55% 
D)  0.424; 57.6%

Question 11

An item has a 30.1% markup based on selling price. What is the equivalent markup percent based on the cost?

Accepted Answer

A)  43.1% 
B)  76.9% 
C)  56.9% 
D)  23.1% 
A)  43.1% 
B)  76.9% 
C)  56.9% 
D)  23.1%

Question 12

Markdowns are usually the result of:

Accepted Answer

A)  lack of seasonality 
B)  changes in style 
C)  absence of special promotions 
D)  absence of competition 
A)  lack of seasonality 
B)  changes in style 
C)  absence of special promotions 
D)  absence of competition

Question 13

The costs associated with running a business are called:

Accepted Answer

A)  operating expenses 
B)  net costs 
C)  net loss 
D)  gross margin 
A)  operating expenses 
B)  net costs 
C)  net loss 
D)  gross margin

Question 14

Reduced price = $22.21; markdown rate = 35%. Find the original price and the markdown amount.

Accepted Answer

A)  Original price = $14.44 
Markdown amount = $7.77 
B)  Original price = $34.17 
Markdown amount = $11.96 
A)  Original price = $14.44 
Markdown amount = $7.77 
B)  Original price = $34.17 
Markdown amount = $11.96

Question 15

A set of speakers that costs $91 sells for a 25% markup based on the cost. What is the markup of the speakers?

Accepted Answer

A)  $364.00 
B)  $113.75 
C)  $72.80 
D)  $22.75 
A)  $364.00 
B)  $113.75 
C)  $72.80 
D)  $22.75

Question 16

Cost is the base when markup is based on the selling price.

Accepted Answer

A) True 
 B)False

Question 17

To find the cost of a product, you can use the formula markup plus selling price equals cost.

Accepted Answer

A) True 
 B)False

Question 18

In arriving at a markup on merchandise, most ________use the markup on cost method.

Accepted Answer

A)  retailers 
B)  wholesalers 
C)  manufacturers 
D)  consumers 
A)  retailers 
B)  wholesalers 
C)  manufacturers 
D)  consumers

Question 19

If costs and expenses are greater than the markup, for a given period, the difference is called:

Accepted Answer

A)  net loss 
B)  reduced price 
C)  markdown 
D)  gross margin 
A)  net loss 
B)  reduced price 
C)  markdown 
D)  gross margin

Question 20

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?

Accepted Answer

A)  75.1% 
B)  42.9% 
C)  8.3% 
D)  57.1% 
A)  75.1% 
B)  42.9% 
C)  8.3% 
D)  57.1%

Markup is sometimes referred to as net profit.

If patio furniture costs $500.00 and sells for $550.00, the percent markup based on selling price is 10%.

An item has a 41.1% markup based on selling price. What is the equivalent markup percent based on the cost?

The cost of a fur coat, assuming a $311.50 markup, which is a 35% markup on selling price, is $202.48.

The selling price of merchandise minus the cost equals the markdown.

An item sells for $48.60 and is marked up 20% on selling price.The cost is $38.88.

When comparing markup based on cost to markup based on selling price:

When calculating a markup based on cost, the sale price is always equal to 100%.

Murry, a retailer, marks up hardware 28% on the selling price. If an electric saw costs $324.00, the selling price would be $414.72.

An item is originally priced to sell for $175 and is marked down 20%. The store takes off an additional 20%, and a customer has a coupon for 10%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.

An item has a 30.1% markup based on selling price. What is the equivalent markup percent based on the cost?

Markdowns are usually the result of:

The costs associated with running a business are called:

Reduced price = $22.21; markdown rate = 35%. Find the original price and the markdown amount.

A set of speakers that costs $91 sells for a 25% markup based on the cost. What is the markup of the speakers?

Cost is the base when markup is based on the selling price.

To find the cost of a product, you can use the formula markup plus selling price equals cost.

In arriving at a markup on merchandise, most ________use the markup on cost method.

If costs and expenses are greater than the markup, for a given period, the difference is called:

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?

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

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Exam 9: Markup and Markdown

Markup is sometimes referred to as net profit.

If patio furniture costs $500.00 and sells for $550.00, the percent markup based on selling price is 10%.

An item has a 41.1% markup based on selling price. What is the equivalent markup percent based on the cost?

The cost of a fur coat, assuming a $311.50 markup, which is a 35% markup on selling price, is $202.48.

The selling price of merchandise minus the cost equals the markdown.

An item sells for $48.60 and is marked up 20% on selling price.The cost is $38.88.

When comparing markup based on cost to markup based on selling price:

When calculating a markup based on cost, the sale price is always equal to 100%.

Murry, a retailer, marks up hardware 28% on the selling price. If an electric saw costs $324.00, the selling price would be $414.72.

An item is originally priced to sell for $175 and is marked down 20%. The store takes off an additional 20%, and a customer has a coupon for 10%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.

An item has a 30.1% markup based on selling price. What is the equivalent markup percent based on the cost?

Markdowns are usually the result of:

The costs associated with running a business are called:

Reduced price = $22.21; markdown rate = 35%. Find the original price and the markdown amount.

A set of speakers that costs $91 sells for a 25% markup based on the cost. What is the markup of the speakers?

Cost is the base when markup is based on the selling price.

To find the cost of a product, you can use the formula markup plus selling price equals cost.

In arriving at a markup on merchandise, most ________use the markup on cost method.

If costs and expenses are greater than the markup, for a given period, the difference is called:

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?

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