Exam 4: Mathematics of Merchandising

If the trade discount series is 30% / 20% / 4% and the net price is $377, what is the list price?

What is the cost of an item that sells for $87.49 if: a) The rate of mark-up on cost is 30%? b) The rate of mark-up on selling price is 30%?

Sports Outfitters purchased hockey jerseys for $72 less 40% and 15%. The normal rate of mark-up on selling price is 40%, and overhead is 25% of the selling price. The jerseys were reduced to $45.90 for the store's Boxing Day Blowout. a) What was the rate of markdown for the sale? b) What was the profit or loss on each jersey at the sale price? c) At the sale price, what was the rate of mark-up on cost?

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 single equivalent trade discount?

An invoice dated March 15 for $400 with terms 2/10, 1/20, EOM, was received on March 20. By what date should the invoice be paid to qualify for the 2% discount?

Mavis Industries sells industrial fans that have a list price of $587.50. The trade discount that they offer to Don Ellis Construction is 37%. What is the net price?

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the break-even price of the set?

Sonic Boom obtained a sound system for $2,400 less 30% and 15%. The system was originally priced so that, when sold in a "20% off" sale, the store's overhead and operating profit represent 25% and 15%, respectively, of the sale price. In a Midnight Madness Special, the system was sold at a " off" special price. a) What was the original "regular price"? b) What was the profit or loss at the special price?

An invoice for $2,956.60, dated February 2, has terms 2/15, 1/30, n/90. What three equal payments on February 17, March 2, and May 2 will settle the account?

After discounts of 20% and 10%, an item sold for $115.50. What was the amount of the discount?

Village Foods employs a 35% rate of mark-up on cost of all dairy products. The store's overhead averages out to 20% of sales each month. What is the operating profit on a 4-litre pail of ice cream for which the wholesale cost is $4.65?

Is it possible for the rate of mark-up on cost to exceed 100%?

Merchandise with a wholesale price of $4,926 is purchased less 55% and 22%. If the retail price is $3,074, determine the mark-up on cost.

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

An invoice dated March 15 for $400 with terms 2/10, 1/20, ROG, was received on March 20. The goods were delivered on April 28. By what date should the invoice be paid to qualify for the 2% discount?

A florist buys potted poinsettias from a nursery at $15 each less 40% and 10%. The florist prices her stock to allow for overhead of 55% of cost and an operating profit of 20% of the selling price. At what price should she sell the poinsettias?

Maritime Cellular purchases a BlackBerry smart-phone model for $595 less trade discounts of 20% and 10%.Maritime's overhead expenses are $59 per unit. a) What should be the selling price to generate a profit of $40 per phone? b) What is the rate of mark-up on cost? c) What is the rate of mark-up on selling price? d) What would be the break-even selling price for a clear-out sale in preparation for the launch of the new model?

M Studios sells a camera listed at $400, less 25%. Todd's Factory sells the same camera for $325. What rate of markdown would Todd's have to offer to match the reduced price at M Studios?

Mr. and Mrs. Ogrodnik want to list their house at a price that will net them a minimum of $320,000 after a real estate commission of 5.5% of the selling price. Rounded to the nearest $100, what is the lowest offer they could accept on their home?

a) Merchant A operates on a rate of mark-up on cost of 45%. If she later marks the price of a few items down to their cost price in order to attract additional customers to the store, what rate of markdown can she advertise? b) Merchant B operates on a rate of mark-up on selling price of 45%. If he later marks the price of a few items down to their cost price in order to attract additional customers to the store, what rate of markdown can he advertise?