Exam 4: Mathematics of Merchandising

Payments of $1000 on January 5 and $800 on January 16 were made on a $2500 invoice dated December 27. The terms on the invoice were 4/10, 2/20, n/45. What was the balance owed after the second payment?

A lawn mower retails for $349. The dealer's overhead is 25% of cost, and normal operating profit is 16 % 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 lawn mower at cost?

Poles Apart obtains Nitro T1 snowboards at a cost of $345 and marks them up by 35% of the selling price. For its Annual Spring Sale, Poles Apart marks down prices by 25%. What is the sale price of the Nitro T1 snowboards?

In addition to the regular trade discount of 25% and a volume purchase discount of 8 % from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders placed in January. a) What is the net price after all three discounts on refrigerators listed at $1195? b) What is the list price on an electric range whose net price works out to be $470.25? c) What single trade discount is equivalent to the three trade discounts? d) After the regular and volume discounts are both taken, what dollar amount of savings does the extra discount for January orders represent on a $1000 list price item?

The rate of markup on the cost of a toaster selling at $54.95 is 45%. a) What was the cost of the toaster to the retailer? b) What is the rate of markup on selling price?

Calculate the missing values:

Garden Centre purchases lawnmowers from a wholesaler for $249 and marks them up by 25% of selling price. At the end of the summer, a scratched floor-display mower's price is reduced to 10% above cost. What percentage price reduction should the price tag show?

On June 29, Josef received an invoice for $815.49, dated June 27. If the terms of the invoice are 2/10, 1/ 20, n60, what amount is required on July 7 to pay the invoice in full?

How many employees will the employer have after all cuts?

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the sale price?

Calculate the missing values.

Lakeside Marine received an invoice from Osborne Boats dated March 26 with terms 1½ /15, n/45, ROG for four 19-foot Barracuda boats at $23,500 each less 20%, 5%. The boats arrived on April 27. Lakeside made a payment of $60,000 on the account on May10. How much does Lakeside still owe?

An invoice for $75,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $50,000. How much is credited to their account?

On March 25, Hannah received an invoice in the mail from Carpet Country for $4235. The invoiced was dated March 22 and had terms 3/15, 1½ /30, n/60. If she made payments of $1000 on each of April 2, April 9, and April 22, how much did Hannah still owe?

Bath 'n Bedroom sets its prices to allow for overhead expenses that average 50% of unit cost and a normal profit of 30% of cost. For towel sets priced at $39.89, determine: a. The wholesale cost b. The rate of markup on selling price

Calculate the missing values.

Unit operating expenses for an item costing $30 are estimated at 40% of cost, and the desired operating profit is 25% of cost. Determine: a. The selling price b. The rate of markup on cost c. The rate of markup on selling price

McFee Furniture received an invoice dated September 14 from Pallisade Manufacturing March 26 with terms 2½/10, EOM for the following items: four Prestige bedroom suites at $3900 each less 20%, 7%, and six Oak Traditional dining room suites at $4880 each less 25%, 5%. 0 each less 20%, 5%. What amount paid on October 10 will cut the amount owed in half?

What was the profit (loss) at the sale price?

Ace Fasteners Ltd. offers Bob's Hardware a trade discount of 44% on all products. Calculate the total list price of a shipment for which Bob's is charged $859.