Question 1

The original selling price minus the sale price is called the:

Accepted Answer

A)  gross margin 
B)  reduced price 
C)  markdown 
D)  markup 
A)  gross margin 
B)  reduced price 
C)  markdown 
D)  markup

Question 2

The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera.

Accepted Answer

A)  $126.67 
B)  $182.40 
C)  $30.40 
D)  $121.60 
A)  $126.67 
B)  $182.40 
C)  $30.40 
D)  $121.60

Question 3

Markup is also referred to as:

Accepted Answer

A)  gross margin 
B)  gross profit 
C)  both gross profit and gross margin 
D)  price differential 
A)  gross margin 
B)  gross profit 
C)  both gross profit and gross margin 
D)  price differential

Question 4

A markdown is:

Accepted Answer

A)  only based on selling price after a markup based on cost 
B)  always based on selling price 
C)  never based on selling price 
D)  based on either cost or selling price 
A)  only based on selling price after a markup based on cost 
B)  always based on selling price 
C)  never based on selling price 
D)  based on either cost or selling price

Question 5

To ascertain the cost of merchandise, take the selling price and subtract the markup.

Accepted Answer

A) True 
 B)False

Question 6

A jewelry store purchased 100 fashion watches for $3000. If the store sold 50 watches at $60, 40 watches at $54, and the rest at $30, find the total markup, the markup percent on selling price, and the equivalent markup percent on cost.

Accepted Answer

A)  $5460, 100%, 182% 
B)  $2460, 82%, 45.1% 
C)  $3000, 55%, 72% 
D)  $2460, 45.1%, 82% 
A)  $5460, 100%, 182% 
B)  $2460, 82%, 45.1% 
C)  $3000, 55%, 72% 
D)  $2460, 45.1%, 82%

Question 7

Higgens buys toy trucks for $12.00 each and sells them for $16.00. The markup based on cost is 23.1%.

Accepted Answer

A) True 
 B)False

Question 8

The markup on an external hard drive is $22. Find the cost of the hard drive if the markup is 20% of the cost.

Accepted Answer

A)  $18.33 
B)  $110.00 
C)  $26.40 
D)  $4.40 
A)  $18.33 
B)  $110.00 
C)  $26.40 
D)  $4.40

Question 9

If the markup on a product is based on the selling price, then the selling price equals 100%.

Accepted Answer

A) True 
 B)False

Question 10

By using a formula, the percent markup based on selling price can be converted to percent markup based on cost.

Accepted Answer

A) True 
 B)False

Question 11

Gross profit includes:

Accepted Answer

A)  markdown 
B)  both operating expenses and overhead 
C)  overhead 
D)  operating expenses 
A)  markdown 
B)  both operating expenses and overhead 
C)  overhead 
D)  operating expenses

Question 12

The Sports Shoppe is buying baseball t-shirts. The cost of the shirts, which includes permission fees, will be $11.44 each if 1000 shirts are purchased. Jamie sells 800 shirts before the baseball season begins at a 50% markup based on cost. What is the gross margin (markup) if Jamie sells the remaining 200 shirts at a 25% reduction from the selling price?

Accepted Answer

A)  $16,302 
B)  $11,154 
C)  $3575 
D)  $4862 
A)  $16,302 
B)  $11,154 
C)  $3575 
D)  $4862

Question 13

The percent of each markdown in a series of markdowns is based on the:

Accepted Answer

A)  original selling price 
B)  marked up selling price 
C)  previous selling price 
D)  gross margin 
A)  original selling price 
B)  marked up selling price 
C)  previous selling price 
D)  gross margin

Question 14

A 17.9% markup based on cost is equivalent to what percent based on selling price (retail)?

Accepted Answer

A)  13.6% 
B)  84.8% 
C)  86.4% 
D)  15.2% 
A)  13.6% 
B)  84.8% 
C)  86.4% 
D)  15.2%

Question 15

When calculating a markup on cost,________ is always equal to 100%.

Accepted Answer

A)  cost 
B)  margin 
C)  selling price 
D)  markup 
A)  cost 
B)  margin 
C)  selling price 
D)  markup

Question 16

A markdown percent can be calculated by dividing the amount of markdown by the sale price.

Accepted Answer

A) True 
 B)False

Question 17

A local dealer sells baseballs for $25.00 each. If this is a 31.6% markup on cost, find the equivalent markup percent on the selling price.

Accepted Answer

A)  24% 
B)  76% 
C)  31.6% 
D)  26.7% 
A)  24% 
B)  76% 
C)  31.6% 
D)  26.7%

Question 18

An item selling for $633 is marked down 25% for a special promotion. It is later marked down 20% of the sale price. What is the final selling price of the item?

Accepted Answer

A)  $791.25 
B)  $379.80 
C)  $348.15 
D)  $588.00 
A)  $791.25 
B)  $379.80 
C)  $348.15 
D)  $588.00

Question 19

The Jewelry Store priced its entire stock of sterling silver at $1577. The original price was $2130. Find the percent of markdown on the original price.

Accepted Answer

A)  135% 
B)  26% 
C)  35% 
D)  74% 
A)  135% 
B)  26% 
C)  35% 
D)  74%

Question 20

A markup based on cost is generally used by retailers.

Accepted Answer

A) True 
 B)False

The original selling price minus the sale price is called the:

The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera.

Markup is also referred to as:

A markdown is:

To ascertain the cost of merchandise, take the selling price and subtract the markup.

A jewelry store purchased 100 fashion watches for $3000. If the store sold 50 watches at $60, 40 watches at $54, and the rest at $30, find the total markup, the markup percent on selling price, and the equivalent markup percent on cost.

Higgens buys toy trucks for $12.00 each and sells them for $16.00. The markup based on cost is 23.1%.

The markup on an external hard drive is $22. Find the cost of the hard drive if the markup is 20% of the cost.

If the markup on a product is based on the selling price, then the selling price equals 100%.

By using a formula, the percent markup based on selling price can be converted to percent markup based on cost.

Gross profit includes:

The percent of each markdown in a series of markdowns is based on the:

A 17.9% markup based on cost is equivalent to what percent based on selling price (retail)?

When calculating a markup on cost,________ is always equal to 100%.

A markdown percent can be calculated by dividing the amount of markdown by the sale price.

A local dealer sells baseballs for $25.00 each. If this is a 31.6% markup on cost, find the equivalent markup percent on the selling price.

An item selling for $633 is marked down 25% for a special promotion. It is later marked down 20% of the sale price. What is the final selling price of the item?

The Jewelry Store priced its entire stock of sterling silver at $1577. The original price was $2130. Find the percent of markdown on the original price.

A markup based on cost is generally used by retailers.

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

The original selling price minus the sale price is called the:

The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera.

Markup is also referred to as:

A markdown is:

To ascertain the cost of merchandise, take the selling price and subtract the markup.

A jewelry store purchased 100 fashion watches for $3000. If the store sold 50 watches at $60, 40 watches at $54, and the rest at $30, find the total markup, the markup percent on selling price, and the equivalent markup percent on cost.

Higgens buys toy trucks for $12.00 each and sells them for $16.00. The markup based on cost is 23.1%.

The markup on an external hard drive is $22. Find the cost of the hard drive if the markup is 20% of the cost.

If the markup on a product is based on the selling price, then the selling price equals 100%.

By using a formula, the percent markup based on selling price can be converted to percent markup based on cost.

Gross profit includes:

The percent of each markdown in a series of markdowns is based on the:

A 17.9% markup based on cost is equivalent to what percent based on selling price (retail)?

When calculating a markup on cost,________ is always equal to 100%.

A markdown percent can be calculated by dividing the amount of markdown by the sale price.

A local dealer sells baseballs for $25.00 each. If this is a 31.6% markup on cost, find the equivalent markup percent on the selling price.

An item selling for $633 is marked down 25% for a special promotion. It is later marked down 20% of the sale price. What is the final selling price of the item?

The Jewelry Store priced its entire stock of sterling silver at $1577. The original price was $2130. Find the percent of markdown on the original price.

A markup based on cost is generally used by retailers.

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