Deck 8: Mathematics of Selling

Question 1

Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
The Oak Gallery had a clearance sale during which it sold an oak coffee table for $233. If the cost was $164 and the operating expenses were 25% of cost, find the amount of profit or loss.

A)$17.25 loss
B)$28.00 profit
C)$17.25 profit
D)$28.00 loss

Answer 1

$28.00 profit

Question 2

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
A local dealer sells baseballs for $25 each. If $7.89 is the markup, what is the cost and the markup on cost?

A)$17.11, 68.4%
B)$25.00, 31.6%
C)$17.11, 46.1%
D)$32.89, 24.0%

Answer 2

$17.11, 46.1%

Question 3

Provide an appropriate response.
Explain the difference between an operating loss and an absolute loss.

Answer 3

Explanations will vary. An operating loss occurs when the reduced price is less than the breakeven point. An absolute loss occurs when the reduced price is below the cost of the items alone.

Question 4

Provide an appropriate response.
Define markdown in your own words.

Question 5

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
A jewelry store purchased 120 fashion watches for $3,600. If the store sold 60 watches at $60, 48 watches at $54, and the rest at $30, find (a)the total markup, (b)the markup percent on selling price, and (c)the equivalent markup percent on cost.

A)$2,952, 82%, 45.1%
B)$2,952, 45.1%, 82%
C)$3,600, 55%, 72%
D)$6,552, 100%, 182%

Question 6

Provide an appropriate response.
Explain which inventory evaluation method you would prefer. Why? How is it calculated?

Question 7

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Markup = $2.36
Selling price = $4.07
% Markup on cost = 36.7%
B)Markup = $2.36
Selling price = $8.79
% Markup on cost = 26.8%
C)Markup = $3.72
Selling price = $2.71
% Markup on cost = 57.8%
D)Markup = $3.73
Selling price = $10.15
% Markup on cost = 57.8%

Question 8

Provide an appropriate response.
Give two reasons why a business would prefer to calculate stock turnover at retail rather
than at cost.

Question 9

Solve the problem.
A furniture store has an average inventory of $5,398 at retail, and an average inventory of $3,757 at cost. The cost of goods sold for the same period is $26,073.58 and sales of furniture were $37,246.20. Find (a)Stock turnover at cost, and (b)stock turnover at retail. Round to the nearest hundredth.

A)(a)1.44, (b)1.43
B)(a)6.90, (b)6.94
C)(a)6.94, (b)6.90
D)(a)4.83, (b)9.91

Question 10

Find the equivalent markup. Round to the nearest tenth of a percent.
Markup on cost: Markup on selling price: 16.8%

A)85.6%
B)79.8%
C)14.4%
D)20.2%

Question 11

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
A local dealer sells baseballs for $25.00 each. If this is a 12.9% markup on selling price, find the equivalent markup percent on cost.

A)85.2%
B)12.9%
C)11.4%
D)14.8%

Question 12

Provide an appropriate response.
Which departments in a grocery store do you think have the highest inventory turnover?
The lowest?

Question 13

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Markup: $35.07
Selling Price: $88.21
B)Markup: $66.00
Selling Price: $119.14
C)Markup: $119.14
Selling Price: $172.28
D)Markup: $80.52
Selling Price: $133.66

Question 14

Find the missing quantities. If there is no operating loss or absolute loss, write "none."

A)Cost = $133
Reduced price = $127
Operating loss = $6
B)Cost = $139
Reduced price = $127
Operating loss = $18
C)Cost = $103
Reduced price = $91
Operating loss = $30
D)Cost = $103
Reduced price = $91
Operating loss = none

Question 15

Find the stock turnover at cost and at retail. Round to the nearest hundredth.

A)Turnover at cost = 2.90
Turnover at retail = 2.92
B)Turnover at cost = 2.14
Turnover at retail = 3.96
C)Turnover at cost = 2.92
Turnover at retail = 2.90
D)Turnover at cost = 1.37
Turnover at retail = 1.36

Question 16

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar.

A)(a)$1,506 (b)$840 (c)$1,545
B)(a)$1,039 (b)$1,065 (c)$826
C)(a)$1,045 (b)$1,065 (c)$826
D)(a)$1,045 (b)$826 (c)$1,065

Question 17

Find the stock turnover at cost and at retail. Round to the nearest hundredth.

A)Turnover at cost = 5.99
Turnover at retail = 2.38
B)Turnover at cost = 3.76
Turnover at retail = 3.79
C)Turnover at cost = 1.58
Turnover at retail = 1.59
D)Turnover at cost = 3.79
Turnover at retail = 3.76

Question 18

Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 19

Provide an appropriate response.
Describe how to determine average inventory for a full year.

Question 20

Find the average inventory.

A)$85,611.00
B)$256,833.00
C)$64,208.25
D)$86,001.00

Question 21

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Cost Price: $36.53
Selling Price: $25.09
B)Cost Price: $0.25
Selling Price: $11.69
C)Cost Price: $11.44
Selling Price: $22.88
D)Cost Price: $25.09
Selling Price: $36.53

Question 22

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
The Oak House had a markup of $23.24 on an oak table that they sold for $70.99. Find (a)the cost, (b)the markup on cost, and (c)the selling price as a percent of cost.

A)$70.99, 32.7%, 305.5%
B)$47.75, 48.7%, 148.7%
C)$47.75, 32.7%, 67.3%
D)$94.23, 24.7%, 75.3%

Question 23

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 24

Solve the problem.
Over a year period, a hardware store made the following purchases of hammers: 24 hammers at $6.89, 30 hammers at $6.08, 36 hammers at $4.69, and 26 hammers at $8.05. Inventory at the end of the year shows 35 hammers remain. Find the inventory value by (a) weighted average method, (b) FIFO Method, and (c) LIFO Method. Round final answers to the nearest cent

A)(a)$188.48
(b)$241.15
(c)$219.10
B)(a)$224.96 (b)$232.24
(c)$281.75
C)(a)$219.10 (b)$232.24
(c)$251.51
D)(a)$219.10 (b)$251.51
(c)$232.24

Question 25

Solve the problem. Round rates to
A local dealer sells baseballs for $25.00 each. If this is a 61.9% markup on cost, find the equivalent markup percent on the selling price

A)38.2%
B)61.9%
C)61.8%
D)70.3%

Question 26

Find the average inventory.

A)$31,645.00
B)$21,096.67
C)$21,472.00
D)$63,290.00

Question 27

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
Toys4U purchases tricycles for $26. The store's operating expenses are 20% of cost with a net profit of 11% of cost. Find the selling price of one tricycle.

A)$34.06
B)$17.94
C)$23.66
D)$28.34

Question 28

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
James Page works in a local music store where he sells guitars for $130.62 each. If he maintains a markup of 51.1% on selling price, what is the cost of a guitar to James?

A)$197.37
B)$63.87
C)$66.75
D)$194.49

Question 29

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Cost Price: $75.22
% Markup on Cost: 24.9%
B)Cost Price: $56.47
% Markup on Cost: 33.2%
C)Cost Price: $93.97
% Markup on Cost: 24.9%
D)Cost Price: $93.97
% Markup on Cost: 20.0%

Question 30

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
The cost of an item is $76. For a special year-end sale the price is marked down 20%. Find the selling price of the item.

A)$63.33
B)$15.20
C)$60.80
D)$91.20

Question 31

Find the average inventory.

A)$319,371.00
B)$79,842.75
C)$63,874.20
D)$76,064.00

Question 32

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Cost = $98.37
Selling price = $177.56
% Markup on selling price = 55.4%
B)Cost = $63.75
Selling price = $142.94
% Markup on selling price = 55.4%
C)Cost = $63.75
Selling price = $142.94
% Markup on selling price = 44.6%
D)Cost = $98.37
Selling price = $177.56
% Markup on selling price = 44.6%

Question 33

Find the average inventory.

A)$32,341.75
B)$32,920.00
C)$25,873.40
D)$129,367.00

Question 34

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.

A)Original price = $36.62
$ Markdown = $12.87
B)Original price = $62.36
$ Markdown = $12.87
C)Original price = $66.88
$ Markdown = $17.39
D)Original price = $32.10
$ Markdown = $17.39

Question 35

Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
The Galerie d'Art paid $138.60 for a limited edition Graux print. The original selling price was $180.18, but this was marked down 25% to make room for incoming pieces. If operating expenses are 28% of cost, find the operating loss and the absolute loss.

A)operating loss: $45.04
Absolute loss: $3.46
B)operating loss: $3.46
Absolute loss: $42.27
C)operating loss: $42.27
Absolute loss: $45.04
D)operating loss: $42.27
Absolute loss: $3.46

Question 36

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 37

Find the missing quantities. If there is no operating loss or absolute loss, write "none."

A)Operating exp = $7.97
Operating loss = $6
Absolute loss = $1.97
B)Operating exp = $6
Operating loss = $1.97
Absolute loss = $7.97
C)Operating exp = $6
Operating loss = $7.97
Absolute loss = $1.97
D)Operating exp = $49.62
Operating loss = $41.65
Absolute loss = $7.97

Question 38

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
A local dealer sells baseballs for $25 each. If $8.89 is the cost, what is the percent of markup on the selling price?

A)13.8%
B)60.8%
C)39.2%
D)64.4%

Question 39

Find the stock turnover at cost and at retail. Round to the nearest hundredth.

A)Turnover at cost = 2.36
Turnover at retail = 2.34
B)Turnover at cost = 5.17
Turnover at retail = 5.12
C)Turnover at cost = 5.12
Turnover at retail = 5.17
D)Turnover at cost = 2.19
Turnover at retail = 12.09

Question 40

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar.

A)a)$5,907 b)$2,850 c)$1,932
B)a)$2,274 b)$2,158 c)$2,261
C)a)$2,274 b)$2,261 c)$2,158
D)a)$5,907 b)$2,627 c)$1,716

Question 41

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
Bob's Tires manufactures steel-belted radials at a cost of $53.66 each. Bob then sells the tires at a 44.8% markup based on cost. Find (a) the markup, (b) the selling price, and (c) the markup as a percent of selling price

A)(a)$24.04
(b)$77.70
(c)30.9%
B)(a)$24.04
(b)$77.70
(c)44.8%
C)(a)$119.78
(b)$173.44
(c)223.2%
D)(a)$119.78
(b)$173.44
(c)69.1%

Question 42

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.

A)% Markdown = 86%
$ Markdown = $485.18
B)% Markdown = 14%
$ Markdown = $91.84
C)% Markdown = 86%
$ Markdown = $91.84
D)% Markdown = 14%
$ Markdown = $78.98

Question 43

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
A local dealer sells baseballs for $25 each. If $6.90 is the cost, what is the percent of markup on the cost?

A)27.6%
B)72.4%
C)2.6%
D)262.3%

Question 44

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Cost = $52.29
% Markup on cost = 35.5%
% Markup on selling price = 55.0%
B)Cost = $52.29
% Markup on cost = 55.0%
% Markup on selling price = 35.5%
C)Cost = $109.81
% Markup on cost = 35.5%
% Markup on selling price = 55.0%
D)Cost = $109.81
% Markup on cost = 55.0%
% Markup on selling price = 35.5%

Question 45

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
What-A-Pane Inc. sells windows for $106.81 each after a markup of $34.69. Find (a)the cost of a window, (b)the markup as a percent of cost, and (c)the markup as a percent of selling price.

A)(a)$141.50
(b)75.5%
(c)48.1%
B)(a)$72.12
(b)32.5%
(c)48.1%
C)(a)$72.12
(b)48.1%
(c)32.5%
D)(a)$141.50
(b)24.5%
(c)75.5%

Question 46

Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.
C:\+B173+B161:B177+B161:B179

A)
B)
C)
D)

Question 47

Find the missing quantities. If there is no operating loss or absolute loss, write "none."

A)Breakeven point = $197
Reduced price = $178
Absolute loss = $50
B)Breakeven point = $197
Reduced price = $178
Absolute loss = none
C)Breakeven point = $135
Reduced price = $116
Absolute loss = none
D)Breakeven point = $135
Reduced price = $116
Absolute loss = $12

Question 48

Solve the problem.
The Chicago Men's Shop made the following purchases of dress shirts: 50 shirts at $78.32 in January, 60 shirts at $41.21 in March, 75 shirts at $82.74 in June, and 35 shirts at $61.60 in August. A September inventory found 150 shirts remaining. Find the inventory value using a)weighted average method, b)FIFO Method, and c)LIFO Method. Round final answers to the nearest cent.

A)(a)$9,895.13
(b)$6,181.50
(c)$12,411.00
B)(a)$14,750.10
(b)$11,748.00
(c)$9,240.00
C)(a)$10,057.50
(b)$10,009.90
(c)$9,698.20
D)(a)$10,057.50
(b)$9,698.20
(c)$10,009.90

Question 49

Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
The Jewelry Store priced its entire stock of sterling silver at $1,394. The original price was $2,022. Find the percent of markdown on the original price.

A)31%
B)69%
C)45%
D)145%

Question 50

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Markup = $4.96
% Markup on cost = 15.0%
% Markup on selling price = 13.0%
B)Markup = $4.96
% Markup on cost = 15.0%
% Markup on selling price = 87.0%
C)Markup = $9.92
% Markup on cost = 13.0%
% Markup on selling price = 66.9%
D)Markup = $9.92
% Markup on cost = 13.0%
% Markup on selling price = 15.0%

Question 51

Find the equivalent markup. Round to the nearest tenth of a percent.
Markup on cost: Markup on selling price: 46.3%

A)13.8%
B)31.6%
C)68.4%
D)86.2%

Question 52

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
A store manager paid $158 for an item and set the selling price at $189.60. What was the percent markup?

A)20%
B)21%
C)16%
D)22%

Question 53

Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 54

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar.

A)(a)$6,855 (b)$3,307 (c)$2,054
B)(a)$3,209 (b)$3,524 (c)$2,786
C)(a)$3,209 (b)$2,786 (c)$3,524
D)(a)$3,112 (b)$3,974 (c)$2,786

Question 55

Find the equivalent markup. Round to the nearest tenth of a percent.
Markup on cost: Markup on selling price: 9.4%

A)10.4%
B)89.6%
C)8.6%
D)91.4%

Question 56

Find the equivalent markup. Round to the nearest tenth of a percent.
Markup on cost: 8.3% Markup on selling price:

A)5.9%
B)7.7%
C)94.1%
D)92.3%

Question 57

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.

A)% Markdown = 35%
Reduced price = $910.65
B)% Markdown = 35%
Reduced price = $1,891.35
C)% Markdown = 65%
Reduced price = $490.35
D)% Markdown = 65%
Reduced price = $910.65

Question 58

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
An office supply store sells a computer disk for $87.95. If the cost is $60.67, find the percent of markup on cost and the equivalent percent of markup on selling price.

A)69%, 31%
B)45%, 31%
C)69%, 145%
D)45%, 69%

Question 59

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
Find the amount of markup of an item which cost a store $215. The store has a 25% markup.

A)$860.01
B)$53.75
C)$268.75
D)$172.00

Question 60

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
Find the selling price of an item which cost a store $209. The store has a 30% markup.

A)$160.77
B)$696.67
C)$62.70
D)$271.70

Question 61

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar.

A)(a)$737 (b)$286 (c)$291
B)(a)$737 (b)$243 (c)$291
C)(a)$268 (b)$286 (c)$247
D)(a)$268 (b)$247 (c)$286

Question 62

Solve the problem.
The August 31 inventory at Kitchen Collection was $43,120 at cost and $61,600 at retail. Purchases during the next four months were $50,460 at cost and $72,100 at retail. After August 31, net sales were $91,800. Use the retail method to estimate the value of the inventory at cost on December 31.

A)$29,330
B)$93,590
C)$1,790
D)$419

Question 63

Find the missing quantities. If there is no operating loss or absolute loss, write "none."

A)Breakeven point = $51
Operating loss = $42
Absolute loss = $9
B)Breakeven point = $20
Operating loss = none
Absolute loss = $9
C)Breakeven point = $42
Operating loss = $9
Absolute loss = $51
D)Breakeven point = $42
Operating loss = none
Absolute loss = none

Question 64

Find the equivalent markup. Round to the nearest tenth of a percent.
Markup on cost: 44.3% Markup on selling price:

A)58.1%
B)41.9%
C)69.3%
D)30.7%

Question 65

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Cost Price: $12.80
Markup: $28.46
B)Cost Price: $18.57
Markup: $22.69
C)Cost Price: $22.69
Markup: $18.57
D)Cost Price: $28.46
Markup: $12.80

Question 66

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
A store sells an item for $290 each. If this is a 40% markup on cost, find the equivalent markup percent on the selling price.

A)290%
B)28.6%
C)66.7%
D)47.6%

Question 67

Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 68

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
A store sells an item for $550 each. If this is a 39.8% markup on the selling price, find the equivalent markup percent on cost.

A)550%
B)28.5%
C)66.1%
D)47.3%

Question 69

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.

A)Markup: $13.44
% Markup on Cost: 34.4%
B)Markup: $4.20
% Markup on Cost: 47.6%
C)Markup: $8.82
% Markup on Cost: 52.4%
D)Markup: $4.20
% Markup on Cost: 90.9%

Question 70

Solve the problem.
Bed 'n' Board Linen took inventory on the first of each month for the full year. The sum of the inventories was $630,639. On December 31, inventory was taken again and amounted to $46,979. Find the average inventory for the year

A)A)$52,124.46
B)$44,896.92
C)$48,638.33
D)$56,468.17

Question 71

Solve for the missing numbers

A)
B)
C)
D)

Question 72

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.

A)Original price = $22.61
Reduced price = $32.56
B)Original price = $12.66
Reduced price = $22.61
C)Original price = $14.33
Reduced price = $4.38
D)Original price = $22.61
Reduced price = $12.66

Question 73

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.

A)
B)
C)
D)

Question 74

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
Chang bought a bumper marked up 35.9% based on selling price at a local auto repair shop. If the markup is $15.46, find (a)the selling price, (b)the cost, and (c)the markup as a percent of the cost.

A)(a)$43.06
(b)$58.52
(c)26.4%
B)(a)$58.52
(b)$43.06
(c)35.9%
C)(a)$27.60
(b)$43.06
(c)35.9%
D)(a)$43.06
(b)$27.60
(c)56.0%

Question 75

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
The amount of markup on a store item is $17. Find the cost to the store if the markup is 20%.

A)$14.17
B)$20.40
C)$3.40
D)$85.00