Question 1

The actual cost can be calculated, if the selling price and the percent markup on selling price is known.

Accepted Answer

A) True 
 B)False

Question 2

Cost is equal to 100% when markup is based on the cost.

Accepted Answer

A) True 
 B)False

Question 3

An item costs $1864 and is marked down twice due to sales. The first markdown rate is 10% and the second markdown rate is 20%. What is the final selling price?

Accepted Answer

A)  $1304.80 
B)  $932.00 
C)  $1834.00 
D)  $1342.08

Question 4

The percent of markdown can be calculated by using the percentage formula which is:

Accepted Answer

A)  rate equals portion divided by base 
B)  base equals portion divided by rate 
C)  portion equals rate divided by base 
D)  rate equals portion times base

Question 5

The term of "new price" pertains to:

Accepted Answer

A)  markdowns only after sale 
B)  markup only 
C)  both markup and markdown 
D)  markdown only

Question 6

A local dealer sells baseballs for $25 each. If $5.27 is the markup, what is the cost?

Accepted Answer

A)  $25.00 
B)  $19.73 
C)  $18.73 
D)  $30.27

Question 7

A markup rate of 35% based on sales price converts to a 45% markup rate based on cost.

Accepted Answer

A) True 
 B)False

Question 8

A DVD player that costs $168 sells for a 30% markup based on the cost. What is the selling price of the DVD player?

Accepted Answer

A)  $560.00 
B)  $50.40 
C)  $129.23 
D)  $218.40

Question 9

When the original selling price of a product has been reduced, this is termed a markdown.

Accepted Answer

A) True 
 B)False

Question 10

Tree-Mark Industries pays $90.00 for unfinished wood furniture and sells it at a markup of 35% o? cost. The selling price is $121.50.

Accepted Answer

A) True 
 B)False

Question 11

The amount a business gets to keep, after paying for all costs and expenses, is termed:

Accepted Answer

A)  gross margin 
B)  gross profit 
C)  net loss 
D)  net profit

Question 12

Pat's Deli makes onion buns that cost $.48 each. 10 percent of the onion buns will spoil and be thrown away. Pat wants a 40 percent markup based on cost. Pat produces 800 onion buns. Each onion bun should sell for:

Accepted Answer

A)  $0.86 
B)  $0.80 
C)  $0.75 
D)  $0.69

Question 13

The price of an item on the retail market is called the:

Accepted Answer

A)  margin price 
B)  markup price 
C)  markdown price 
D)  selling price

Question 14

Sunfresh Bakery makes Italian bread that costs $1.34 per loaf. Past experience shows that 8 percent of the loaves will spoil and have to be discarded. Assuming Sunfresh wants a 45 percent markup based on cost and produces 250 loaves, each loaf of bread should sell for:

Accepted Answer

A)  $2.11 
B)  $2.95 
C)  $2.08 
D)  $1.94

Question 15

The percent markup on cost is equal to the dollar markup divided by the selling price.

Accepted Answer

A) True 
 B)False

Question 16

If a product is marked up, the new price is called the reduced price.

Accepted Answer

A) True 
 B)False

Question 17

When a fruit and vegetable stand marks up produce, the selling price assumes no spoilage will occur.

Accepted Answer

A) True 
 B)False

Question 18

An item selling for $1681 is marked down 10% for a special promotion. It is later marked down 40% of the sale price. Because it still hasn't been sold, it is marked down an additional 20%. What is the final selling price of the item?

Accepted Answer

A)  $504.30 
B)  $726.19 
C)  $1611.00 
D)  $420.25

Question 19

After finding the first selling price upon which a series of markup or markdowns will be based, all subsequent changes:

Accepted Answer

A)  will result in a profit when using markups, and a loss using markdowns 
B)  will be based upon selling price 
C)  will be based on cost 
D)  will be based on either cost or selling price for markups, and selling price for markdowns

Question 20

If you have a series of markdowns, each markdown is based on the original selling price.

Accepted Answer

A) True 
 B)False

Exam 9: Markup and Markdown

The actual cost can be calculated, if the selling price and the percent markup on selling price is known.

Cost is equal to 100% when markup is based on the cost.

An item costs $1864 and is marked down twice due to sales. The first markdown rate is 10% and the second markdown rate is 20%. What is the final selling price?

The percent of markdown can be calculated by using the percentage formula which is:

The term of "new price" pertains to:

A local dealer sells baseballs for $25 each. If $5.27 is the markup, what is the cost?

A markup rate of 35% based on sales price converts to a 45% markup rate based on cost.

A DVD player that costs $168 sells for a 30% markup based on the cost. What is the selling price of the DVD player?

When the original selling price of a product has been reduced, this is termed a markdown.

Tree-Mark Industries pays $90.00 for unfinished wood furniture and sells it at a markup of 35% o? cost. The selling price is $121.50.

The amount a business gets to keep, after paying for all costs and expenses, is termed:

Pat's Deli makes onion buns that cost $.48 each. 10 percent of the onion buns will spoil and be thrown away. Pat wants a 40 percent markup based on cost. Pat produces 800 onion buns. Each onion bun should sell for:

The price of an item on the retail market is called the:

Sunfresh Bakery makes Italian bread that costs $1.34 per loaf. Past experience shows that 8 percent of the loaves will spoil and have to be discarded. Assuming Sunfresh wants a 45 percent markup based on cost and produces 250 loaves, each loaf of bread should sell for:

The percent markup on cost is equal to the dollar markup divided by the selling price.

If a product is marked up, the new price is called the reduced price.

When a fruit and vegetable stand marks up produce, the selling price assumes no spoilage will occur.

An item selling for $1681 is marked down 10% for a special promotion. It is later marked down 40% of the sale price. Because it still hasn't been sold, it is marked down an additional 20%. What is the final selling price of the item?

After finding the first selling price upon which a series of markup or markdowns will be based, all subsequent changes:

If you have a series of markdowns, each markdown is based on the original selling price.