Deck 5: Trade Discount, Cash Discount, Markup, and Markdown

Question 1

Uptown Goldsmith sells watches for $840.00 less 12.55%. Its competitors across the street offer the same type of watch for $860.00 less 13.25%, 11.5%. What additional rate of discount must Uptown offer to meet the competitor's price?

Answer 1

Uptown N = 840(1-0.1255) = 840(0.8745) = 734.58
Competitor's N = 860(1 - 0.1325)(1 - 0.115) = $660.25
Additional Uptown discount = 734.58 - 660.25 = $74.33
Additional Uptown discount rate = = 10.11871%

Question 2

A 12 % discount on a pair of washer and dryer that Gayle purchased, amounted to $156.00. Calculate the net price.

Answer 2

0.125L = 156
L = $1248.00
N = L - D
N = 1248 - 156 = $1092.00

Question 3

Compute the rate of discount allowed on a cordless drill that lists for $149.99 and is sold for $79.99.

Answer 3

Amount of discount = 149.99-79.99 = 70.00
Rate of discount = = .466697 = 46.670%

Question 4

Determine the equivalent single rate of discount for each of the following series of discounts.
a) 18 %, 10.0%
b) 50%, 33 %, 5.0%

Question 5

A hitch and trailer listed at $2 149.00 has a net price of $1 360.00. What is the rate of discount?

Question 6

The net price of an article is $84.62. What is the list price if a discount of 17% was allowed?

Question 7

Big Boy Clothing Store lists an article for $99.00 less 20% and 15%. A competitor carries the same article for $115.00 less 18%. What further discount (correct to the nearest 1/10 of 1%) must the competitor allow so that its net price is the same as Deep Discount's?

Question 8

A 14% discount on a dryer that Sean purchased, amounted to $70.00. Calculate the net price.

Question 9

A store advertises a discount of $10.00 on a shirt. If the discount is 30%, for how much was the shirt sold?

Question 10

A lathe is listed for $477.00 less 19 %, 9%, 7.7%.
a) What is the net price?
b) How much is the amount of discount allowed?
c) What is the equivalent single rate of discount that was allowed?

Question 11

A store advertises a discount of $54.72 on sandals. If the discount is 33.5%, for how much were the sandals sold?

Question 12

Kaz purchases an article with a net price of $114.54 after a discount of 17% was allowed. Calculate the list price.

Question 13

A 47% discount allowed on an article amounts to $3.57. What is the net price?

Question 14

A discount store lists an article for $875.00 less 25% and 20.5%. a competitor carries the same article for $847.90 less 21.5%. What further discount (correct to the nearest of 1%) must the competitor allow so that its net price will be the same as that of the discount store?

Question 15

A fridge was sold during a clearance sale for $657.00. If the fridge was sold at a discount of 24%, what was the list price?

Question 16

A television set was sold during a clearance sale for $299.00. If the television was sold at a discount of 70%, what was the list price?

Question 17

Determine the equivalent single rate of discount for each of the following series of discounts.
a) 18 %, 4.5%
b) 36%, 7 %, 1.5%

Question 18

Determine the net price of an article listed at $12 050 less 20%, 16%, %.

Question 19

Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for $205.00.

Question 20

What rate of discount has been allowed if an item that lists for $720.00 is sold for $681.57?

Question 21

Burke Company received an invoice dated November 18 for a shipment of goods received November 21. The invoice was for $9 255.00 less 40%, 13.375% with terms 5/10, 3/20, n/45. How much must Burke pay on December 2 to reduce its debt
a) by $2000.00?
b) to $2000.00?
c) if Burke Company makes a partial payment of $4000 on November 25, how much should be credited to the account

Question 22

Kudos furniture sells maple wood bedroom sets for a price of $3 560 if the purchase is financed. The company also advertises "no payments and no interest for one year". Joan and her husband suggested to pay cash for the furniture and got an offer from the salesperson for $3 382, which they took.
(i) How much was the discount for paying cash?
(ii) What was the rate of discount on the cash purchase?

Question 23

The Snow Store received an invoice for $6 710.00 dated July 13, terms 5/10, 2/30, n/90, for a shipment of skis. The Ski Shop made two partial payments.
a) How much was paid July 20 to reduce the unpaid balance to $4000.00?
b) How much was paid on August 11 to reduce the outstanding balance by $1700.00?

Question 24

What amount will reduce the amount due on an invoice of $9410.25 by $842.00 if the terms of the invoice are 5/10, n/30 and the payment was made during the discount period?

Question 25

An invoice shows a net purchase price of $1809.13 after the subtraction of discounts of 12.5%, 25%, 8.3%. What was the list price?

Question 26

Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for:
10 wood trays at $37.45 each;
35 wood planters at $43.75 each;
50 wood bowls at $37.25 each.
All items are subject to trade discounts of 33.5%, 7.125%, 4%.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full on September 6?
c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

Question 27

An invoice for $6 200.00, dated May 28, 3/10, 1/20, n/60, was received on May 30. What payment must be made on June 5 to reduce the debt to $4760.00?

Question 28

What is the list price of an article that is subject to discounts of 40.5%, 10.4%, 5.0% if the net price is $650.00?

Question 29

The Local Dollar Store received an invoice for $8 500.00 dated January 31, terms 5/10, 2/30, n/90, for a shipment of skis. The Local Dollar Store made two partial payments.
a) How much was paid on February 7 to reduce the unpaid balance to $5000.00?
b) How much was paid on March 1 to reduce the outstanding balance by $1500.00?
c) What was the outstanding balance on the account on March 2?
d) How much did the Local Dollar Store save by taking the advantage of the cash discounts?

Question 30

On June 18, an invoice dated June 18 for $6250.00 less 17%, 16%, terms 5/10, n/30, was received by Nova Distributors.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full within the discount period?

Question 31

DeSomma and Brown received an invoice for $14 520 dated November 29, terms 5/20, n/45, from Happy Valley Winery for a truckload of grapes received December 17. DeSomma and Brown made a partial payment of $4 955.00 on December 12.
a) By how much did DeSomma and Brown reduce the amount due on the invoice?
b) How much does DeSomma and Brown still owe?

Question 32

Daffodil Supplies received a partial payment of $2 300.50 from J&K Landscape company on June 7 on an invoice of $7 539 dated May 12, terms 5/10, 3/30, n/60.
a) For how much should the Daffodil Supplies credit J&K Landscape's account for the payment?
b) How much does J&K Landscape still owe on the invoice?

Question 33

The Exotic Import Company received an invoice dated January 5 for a shipment of goods received January 11. The invoice was for $5525.00 less 40%, 8% with terms 3/20 R.O.G. How much must Exotic Import pay on January 20th to reduce its debt
a) by $3000.00?
b) to $3000.00?

Question 34

Deep Discount Electronics lists an article for $127.00 less 12.5% and 11.5%. A competitor carries the same article for $137.00 less 15.5%. What further discount (correct to the nearest 1/10 of 1%) must the competitor allow so that its net price is the same as Deep Discount's?

Question 35

What is the list price of an article that is subject to discounts of 23.25%, 11.2%, 4% if the net price is $664.88?

Question 36

Sepaba Ltd. received an invoice dated November 20 from Wallis Specialties of Germany with terms 5/20, n/45 for:
10 vases at $35.00 each;
20 figurines at $50.50 each;
40 glass flutes at $80.50 each.
All items are subject to trade discounts of 30%, 10%, 5%.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full on December 8?
c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

Question 37

An invoice dated May 12, terms: 5/10, n/30 for $3 000.00 was received by Bruce Distributors.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid on June 5?
c) What is the amount due if the invoice is paid on May 20?

Question 38

The following invoices, all with terms 5/10, 2/30, n/60, were paid together on March 15. Invoice No. 457 dated January 30 is for $294.67; invoice No. 542 dated February 15 is for $486.50; and invoice No. 877 dated March 10 is for $911.25. What amount was remitted?

Question 39

The net price of an article is $272.20 after discounts of 21% and 16% have been allowed. What was the list price?

Question 40

An invoice shows a net price of $231.88 after discounts of 17.8%, 8.6%, 6.3%. What was the list price?

Question 41

A tire dealer bought tires from a wholesaler at $75.00 dollars each and sold the tires at a mark-up of 25% of cost.
a) Calculate the selling price of the tires.
b) Calculate the rate of markup based on the selling price.

Question 42

Find the cost of an item that was sold for $4230.00 in order to realize a margin of 113% based on cost.

Question 43

A gross profit of $800.00 is made on a sale of services. If the gross profit is 15% based on the selling price, what was the cost?

Question 44

An invoice for $4755.00, dated March 27, terms 3/10 E.O.M., was received March 29. What payment must be made on April 10 to reduce the debt to $1900.00?

Question 45

Christine's pet shop buys cat litter for $15.00 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20 % of cost.
a) For how much should a bag be sold?
b) Calculate the amount of markup.

Question 46

The Alpaca Wool Shoppe bought 150 scarves for $4 150.00; 50 scarves were sold at a markup of 175% of cost and 30 scarves at a markup of 125% of cost; 40 of the scarves were sold during a clearance sale for $35.50 each and the remaining Scarves were disposed of at 15% below cost. Assume all scarves had the same cost.
a) What was the markup realized on the purchase?
b) What was the percent markup realized based on cost?
c) What was the gross profit realized based on selling price?

Question 47

A gross profit of $96.00 is made on a sale. If the gross profit was 52% based on selling price, what was the cost?

Question 48

The Nursery bought 800 plants auctioned off en bloc for $5 550.00. This means that each plant has the same cost. On inspection, the plants were classified as normal quality, seconds, and substandard. The 420 normal quality plants were sold at a markup of 85% of cost, the 290 plants classified as seconds were sold at a markup of 21% of cost, and the plants classified as substandard were sold at 83% of their cost.
a) What was the unit price at which each of the three classifications was sold?
b) If overhead is 23% of cost, what was the amount of profit realized on the purchase?
c) What was the average rate of markup based on the selling price at which the plants were sold?

Question 49

An article cost $4 270.00 and was sold for $9 947.00. What was the percent markup based on selling price (correct to the

Question 50

A gross profit of $181.00 is made on a sale. If the gross profit is 22.5% based on selling price, what was the cost?

Question 51

A dealer bought personal computers for $2 250.00 less 41%, 31%. They were sold for $1585.00.
a) What was the markup as a percent of cost?
b) What was the markup as a percent of selling price?

Question 52

What is the regular selling price of an item that cost $1345.00 if the markup is 27% of the regular selling price?

Question 53

Find the cost of a car sold for $25 000 to realize a markup of 8% based on cost.

Question 54

What is the selling price of an item bought for $1420.00 if the markup based on selling price is 59%?

Question 55

Find the cost of an item sold for $4 115 to realize a markup of 36% based on cost.

Question 56

A merchant buys an item listed at $69.00 less 34% from a distributor. Overhead is 44% of cost and profit is 37.5% of cost. For how much should the item be retailed?

Question 57

An appliance store sells electric kettles at a markup of 23.6% of the selling price. The store's margin on a particular model is $7.78.
a) For how much does the store sell the kettles?
b) What was the cost of kettles to the store?
c) What is the percent markup based on cost?

Question 58

Encino Ltd. received an invoice dated February 16 for $520.00 less 25%, 8.75%, terms 3/15 E.O.M. A cheque for $159.20 was mailed by Encino on March 15 as part payment of the invoice.
a) By how much did Encino reduce the amount due on the invoice?
b) How much does Encino still owe?

Question 59

A bicycle at Janice's sport shop, costing $108.50 was marked up to reflect 40% of the cost price. Calculate the selling price.

Question 60

An invoice for $5 999.00, dated June 27, terms 2/10 E.O.M., was received June 30. What payment must be made on July 10 to reduce the debt to $2000.00?

Question 61

A skateboard costing $16.23 was marked up to realize gross profit of 50% of the selling price.
a) What was the selling price?
b) What was the gross profit as a percent of cost?

Question 62

A bed and bedding store sold a futon regularly priced for $330.00 for $240.00. The futon was originally purchased for $200.00 less 60%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the futon was sold.
b) Calculate the operating profit or loss at the sale price.

Question 63

A retail store realizes a gross profit of $62.67 if it sells an article at a margin of 32% of the selling price.
a) What is the regular selling price?
b) What is the cost?
c) What is the rate of markup based on cost?
d) If overhead is 21% of cost, what is the break-even price?
e) If the article is sold at a markdown of 25%, what is the operating profit or loss?

Question 64

Sean's Hardware Supplies sells a snowblower for $750.99. The markup is 70% of cost.
a) How much does the store pay for this snowblower?
b) What is the rate of markup based on selling price?

Question 65

A retailer buys a computer for resale at $500.00 less 35%, 10%. The store marks the merchandise to cover expenses of 15% of the regular selling price and a net profit of 24% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 25%. What is the operating profit or loss?

Question 66

A natural gas oven cost a retailer $420.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 65% of the regular selling price. During the end-of-season sale, the barbecue is marked down 42%.
a) What is the end-of-season sale price?
b) What rate of markup based on cost will be realized during the sale?

Question 67

The Camping Store buys sleeping bags for $54.10 less 12% for buying more than 50 sleeping bags. The store operates on a margin of 51% of the sale price and advertises that all merchandise is sold at a discount of 25% of the regular selling price. What is the regular selling price of the sleeping bags?

Question 68

Bargain City bought desks for $175.00 less 29%, 21%, 13%. The store's overhead is 65% of cost and normal profit is 27% of cost.
a) What is the regular selling price of the desks?
b) At what price can the desks be put on sale so that the store incurs an operating loss of no more than 30% of the overhead?
c) What is the maximum rate of markdown at which the desks can be offered for sale in part b)?

Question 69

Sheldan Services sells oil at a markup of 46% of the selling price. If Sheldan paid $1.99 per litre of oil,
a) what is the selling price per litre?
b) what is the rate of markup based on cost?

Question 70

A retailer buys an appliance for resale at $2123.00 less 27%, 20%. The store marks the merchandise to cover expenses of 23% of the regular selling price and a net profit of 12.9% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 22%. What is the operating profit or loss?

Question 71

A furniture store sold a bed regularly priced for $990.00 for $720.00. The bed was originally purchased for $600.00 less 40%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the bed was sold.
b) Calculate the operating profit or loss at the sale price.

Question 72

Murray's Pro Shop purchased sets of golf clubs for $710.00 less 22%, 17%, and 19%. Expenses are 19% of the regular selling price and the required profit is 19% of the regular selling price. The store decided to change the regular selling price so that it could offer a 47% discount without affecting its margin. At the end of the season, the unsold sets were advertised at a discount of 60%. What operating profit or loss was realized on the sets sold at the end of the season?

Question 73

Dave and Lance buy pants for $32.75 less 12.75%, 18%. The pants are priced at a regular selling price to cover expenses of 35% of selling price and a profit of 32% of selling price. For a special weekend sale, shirts were marked down 15%.
a) What was the operating profit or loss on the pants sold during the weekend sale?
b) What rate of markup was realized based on the sale price?

Question 74

A retailer paid $59.23 for a set of utensils. Overhead is 14% of the regular selling price and profit is 11% of the regular selling price. During a clearance sale, the set was sold at a markdown of 17%. What was the operating profit or loss on the sale?

Question 75

An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The dealer's overhead is 17% of the regular selling price and the answering machine was cleared out for $175.45.
a) What is the regular markup based on selling price?
b) What was the rate of markdown at which the answering machine was sold?
c) What was the operating profit or loss?
d) What rate of markup based on cost was realized?

Question 76

Chris's Photographic Supplies sells a Minolta camera for $551.83. The markup is 72% of cost.
a) How much does the store pay for this camera?
b) What is the rate of markup based on selling price?

Question 77

The regular selling price of merchandise sold in a store includes a margin of 62% based on selling price. During a sale, an item which cost the store $231.25 was marked down 47%. For how much was the item sold?

Question 78

An item that cost the dealer $2331.00 less 14%, 12.25% carries a price tag at a markup of 70% based on cost. For quick sale the item was reduced 30%. What was the sale price?

Question 79

A value oriented store buys video recorders for $230.75 less 42%, 11.5%. Expenses are 65% of normal selling price and the required profit is 13% of normal selling price. All merchandise is marked so that the store can advertise a discount of 55%, while still maintaining its regular margin. During the annual clearance sale, the price of the unsold item is marked down 70%. What operating profit or loss is made by the store on items sold during the sale?

Question 80

A bike shop reduces the price of a bike for quick sale from $455.00 to $395.00. Compute the markdown correct to the