Exam 12: Markups and Markdowns: Perishables and Breakeven Analysis

Belle's Bake Shop makes croissants that cost $1.75 each. Past experience shows that 10% of the croissants will spoil and have to be discarded. Assuming Belle wants a 45% markup based on cost and produces 300 croissants, each croissant should sell for:

May's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming May wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?

J.C. Penney sells a Timex watch for $139.99 that cost $89.97. J.C. Penney's percent of markup based on the selling price is:

If percent markup on cost and selling price are known, one is able to compute the:

When markup is based on selling price, the cost is 100%.

Contribution margin is:

To place a price on perishable items, there is no need to calculate the total cost as well as total selling price of the items.

Gross profit plus operating expenses equals net income.

Net income is calculated as:

A. If the cost of a TV is $120 and it sells for $200, what is the percent of markup based on cost? Round to the nearest hundredth percent. B. Check your answer.

A computer sells for $995, which is marked up 35% of the selling price. The cost of the computer is:

Find the cost and markup of a stove if it sells for $400 and is marked up 100% of the cost.

A video game sells at Arnolds for $14.99. Arnolds marks the game up at 40% of the selling price. The cost of the video game to Arnold is:

Selling price = cost - markup.

Convert a 30% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.)

An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is:

Convert a 36% markup on selling price to the equivalent percent markup on cost.

Percent markup on selling price can be converted to percent markup on cost by formula.