Exam 4: Mathematics of Merchandising

A television set which cost a dealer $375 was marked up 140%. This item was then marked down 40% for quick sale. What was the sale price?

Cliff sells memberships at his karate club for $500 per year. His nearest competitor is offering a special price during the last two weeks of December of $425 per year. What rate of markdown will Cliff have to offer to match his competitor's price?

M Studios buys cameras at a unit cost of $200. Their operating expense is 35% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What selling price should M Studios advertise for the camera?

The wholesale price of an industrial part is $5,523 less 37% and 25%. The retailer has a mark-up on cost is 29.83%. Operating expenses for the retailer is 35% of selling price. If the part is sold for $2,879.80, determine the rate of mark-up actually realized.

Northern Outfitters' invoice to Rico's Menswear for $2,463.80 was dated October 22 with terms 2/10, n/30. Late payments are charged a 1% penalty on the overdue balance. Rico made payments of $1,000 on October 31 and $800 on November 20. What amount will pay off the balance on December 8?

A product has a wholesale price of $876 less 27% and 8%. Mark-up on cost is 29%, while operating expenses are 16% of selling price. If the retailer sells the product for $645.09, determine the rate of mark-up realized.

What is the list price of a sofa that has a net price of $1,119 and a trade discount of 26.7%?

Car parts were purchased at a cost of $810 less 15%, 10% and 5%. The net cost of the parts were $603.20.

An invoice for $45,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. A payment of $30,000 was made on April 14. What is the outstanding balance?

The net price of a computer that is subject to a trade discount of 25% is $1,251. What is the list price?

A product costing $250, less 10%, 15%, and 5%, sells to allow for overhead expenses of 25% of the cost. What is the break-even price?

A retailer marks up all cosmetic products to allow for overhead expenses of 40% of cost and operating profit of 25% of cost. If a product does not sell within two months, the product is marked down to its break-even price. What rate of markdown is the retailer using?

Salestopia purchases rebuilt engines for resale. Recently, it purchased engines from a wholesaler for $4,908 less 37%, 16% and 3%. Operating costs are 57% of the cost of the engine. Salestopia usually marks up the engines by 54% of the selling price. If the engines were to be sold at a break-even price, then determine the markdown percentage.

Workwear Station uses a mark-up on cost of 60% to establish its retail prices. This pricing rule builds in a profit of 25% of cost. What rate of markdown can Workwear Station offer and just break even on the reduced price?

A snow blower retails for $489. The dealer's overhead is 20% of cost, and normal operating profit is 16 $\frac{2}{3}$ % of cost. a) What is the largest amount of markdown that will allow the dealer to break even? b) What rate of markdown will price the snow blower at cost?

What is the rate of mark-up on selling price per pair?

M studios received an invoice for photography equipment for $500 dated May 5, with terms 2/10, n/30. What payment will settle the invoice on: a) May 15? b) May 16?

An invoice for $20,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17^th. A payment of $10,000 is made on March 26. How much is credited to the account?

Office furniture was purchased by a retailer for $506 less 32% and 9%. There is a 39% mark-up on cost and operating expenses are 14% of selling price. If the retailer put the furniture on sale to realize an 18.15% mark-up, determine the price it was sold.

Stanford Marketing Inc. received an invoice for $7,500 on April 10, with terms 3/10, n/30, EOM. Stanford submitted a payment of $5,000 on May 10. What is the outstanding balance on the invoice after the payment is made?