Exam 12: Markups and Markdowns: Perishables and Breakeven Analysis

Camille Keegan sells lamps for $92.10 that cost her $62.00. What is Camille's percent of markup based on the selling price? (Round to nearest hundredth percent.)

When markups are based on the selling price, the:

Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is:

Gross profit is net sales minus the cost of bringing merchandise into the store.

The markdown percent is calculated by:

Dollar markup divided by the selling price equals percent markup on cost.

Jay King, owner of a local Bed and Bath store, knows that his customers will pay at most $299 for a blow-up bed. Assuming Jay wants a 40% markup on the selling price, the most he could pay the manufacturer for the blow-up bed is:

When markup is based on selling price, the cost is the base.

Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is:

Convert a 40% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.) .

Selling price times 1 minus markup percent on selling price will equal the cost if markup is based on selling price.

Jackie Smith, a customer of Roger Blank, will pay only $190 for a tennis racket. Assuming Roger works on a 60% markup on the selling price, the most Roger will pay the manufacturer is:

Selling price $500 Markup % on cost 40% Actual cost?

Zales bought a tea set for $1,400. Zales wants to mark up the set 55% of the selling price. The selling price of the tea set should be:

Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?

Contribution margin is selling price plus unit cost.

Actual cost is equal to the cost times the markup percent on cost plus 1.

Fathers' Day suits were advertised for 35% off the regular price. A suit regularly sells for $210. The amount of the markdown is:

Lester Co. produces toys kites. It has a fixed cost of $62,150. If the selling price per unit is $9.50 and the variable cost per unit is $6.25, the breakeven point is: