Question 1

A final selling price may be the result of a series of markdowns (and possibly some markups).

Accepted Answer

A) True 
 B)False

Question 2

Complete (round answers to nearest cent):
 $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Total Qty } \
\text { Bought }
\end{array} & \begin{array} { c } 
\text { Unit } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Markup \% on } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Sales }
\end{array} & \begin{array} { c } 
\% \text { That Will } \
\text { Spoil }
\end{array} & \begin{array} { c } 
\text { Selling Price } \
\text { Per Unit }
\end{array} \
\hline \text { Brownies } & 40 & \$ .70 & \mathrm {~A} & 40 \% & \mathrm {~B} & 10 \% & \mathrm { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Complete (round answers to nearest cent):
 \[\begin{array}...

Question 3

Kohl's sells watches that cost $6.95 for a selling price of $39.99. What is the percent markup on cost? (Round to the nearest tenth percent.)

Accepted Answer

A) 17.4% 
B) 82.6% 
C) 575.9% 
D) 475.4% 
E) None of these

Question 4

Bill Angel marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price?

Accepted Answer

The answer of Bill Angel marks up his goods 38%...

Question 5

When markup is based on cost:

Accepted Answer

A) Cost is the portion 
B) Markup is the rate 
C) Cost is equal to selling price 
D) Cost is 100% 
E) None of these

Question 6

Jorge Keegan sells lamps for $92.10 that cost him $62.00. What is Jorge's percent of markup based on the selling price? (Round to nearest hundredth percent.)

Accepted Answer

The answer of Jorge Keegan sells lamps for $92.10 that...

Question 7

Mr. Small, the store manager for Jay's Appliance, is having a difficult time placing a selling price on a refrigerator that cost $410. Mr. Small knows his boss would like to have a 45% markup based on cost. The selling price should be:

Accepted Answer

A) $745.45 
B) $754.54 
C) $594.50 
D) $549.50 
E) None of these

Question 8

Assume markup is based on cost. If the cost of a table is $62 and it sells for $110, what is the percent of markup based on cost? Round to the nearest hundredth percent.

Accepted Answer

The answer of Assume markup is based on cost. If...

Question 9

Dollar markup divided by the selling price equals percent markup on cost.

Accepted Answer

A) True 
 B)False

Question 10

Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)

Accepted Answer

The answer of Ace Hardware purchased 15 shovels from Skill...

Question 11

Calculate the final selling price.
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Original } \
\text { SellingPrice }
\end{array} & \begin{array} { c } 
1 \text { st } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { 2nd } \
\text { Markdown }
\end{array} & \text { Markup } & \begin{array} { c } 
\text { Final } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { Final Selling } \
\text { Price }
\end{array} \
\hline \$ 4,000 & 10 \% & 15 \% & 6 \% & 8 \% & ? \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the final selling price.
 \[\begin{array} {...

Question 12

An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is:

Accepted Answer

A) $197.40 
B) $179.40 
C) $149.70 
D) $194.70 
E) None of these

Question 13

Assume markup is based on selling price. Solve for the selling price (round to nearest cent):
25% markup on selling price
Actual cost $650
Selling price?

Accepted Answer

The answer of Assume markup is based on selling price....

Question 14

Contribution margin is selling price plus unit cost.

Accepted Answer

A) True 
 B)False

Question 15

Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille's percent of markup based on the selling price is:

Accepted Answer

A) 38.9% 
B) 28.94% 
C) 40.73% 
D) 40.37% 
E) None of these

Question 16

Fathers' Day suits were advertised for 35% off the regular price. A suit regularly sells for $210. The amount of the markdown is:

Accepted Answer

A) $37.50 
B) $136.50 
C) $73.50 
D) $163.50 
E) None of these

Question 17

When markups are based on the selling price, the:

Accepted Answer

A) Selling price is the portion 
B) Selling price is 100% 
C) Selling price is cost - markup 
D) Selling price is 100% + cost percent 
E) None of these

Question 18

Match the following terms with their definitions.
-Assume markup is based on cost. Complete:
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Cost } & \% \text { of Markup } & \begin{array} { c } 
\text { Amount of } \
\text { Markup }
\end{array} & \text { Selling Price } \
\hline \$ 500 & 30 \% & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

A) No profit, no loss 
B) Regular expenses of doing business 
C) Dollar profit 
D) Goods or services with a limited life 
E) Price reductions
F)Price paid to supplier
G)Cost is base
H)Selling price is base
I)Original selling price minus current price
J)Selling price minus cost
K)Net sales - cost of goods sold
L)Difference between selling price and variable cost
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1)Calculate dollar markup and percent markup on cost.; 08-02 (1)Calculate dollar markup and percent markup on selling price.; 08-03 (1)Calculate markdowns; compare markdowns and markups.; 08-03 (2)Price perishable items to cover spoilage loss.; 08-04 (1)Calculate contribution margin.; 08-04 (2)Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation

Question 19

Evelyn Smith, a customer of Bill Blank, will pay only $125 for a tea set. Assuming Bill works on a 40% markup on the selling price, what is the most Bill could pay the manufacturer for this tea set?

Accepted Answer

The answer of Evelyn Smith, a customer of Bill Blank,...

Question 20

Selling price times 1 minus markup percent on selling price will equal the cost if markup is based on selling price.

Accepted Answer

A) True 
 B)False

Exam 8: Markups and Markdowns: Perishables and Breakeven Analysis

A final selling price may be the result of a series of markdowns (and possibly some markups).

Kohl's sells watches that cost $6.95 for a selling price of $39.99. What is the percent markup on cost? (Round to the nearest tenth percent.)

Bill Angel marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price?

When markup is based on cost:

Jorge Keegan sells lamps for $92.10 that cost him $62.00. What is Jorge's percent of markup based on the selling price? (Round to nearest hundredth percent.)

Mr. Small, the store manager for Jay's Appliance, is having a difficult time placing a selling price on a refrigerator that cost $410. Mr. Small knows his boss would like to have a 45% markup based on cost. The selling price should be:

Assume markup is based on cost. If the cost of a table is $62 and it sells for $110, what is the percent of markup based on cost? Round to the nearest hundredth percent.

Dollar markup divided by the selling price equals percent markup on cost.

Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)

An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is:

Assume markup is based on selling price. Solve for the selling price (round to nearest cent): 25% markup on selling price Actual cost $650 Selling price?

Contribution margin is selling price plus unit cost.

Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille's percent of markup based on the selling price is:

Fathers' Day suits were advertised for 35% off the regular price. A suit regularly sells for $210. The amount of the markdown is:

When markups are based on the selling price, the:

Evelyn Smith, a customer of Bill Blank, will pay only $125 for a tea set. Assuming Bill works on a 40% markup on the selling price, what is the most Bill could pay the manufacturer for this tea set?

Selling price times 1 minus markup percent on selling price will equal the cost if markup is based on selling price.