Deck 8: Markup and Markdown

Question 1

It costs $5,600 to manufacture a Jet Ski. If the desired percent markup based on cost is 48%, how much should each Jet Ski sell for?

A) $13,880
B) $8,288
C) $11,667
D) $21,538

Answer 1

$8,288

Question 2

The ____________________ price of an item is the promotional price of merchandise after a markdown.

Answer 2

sale

Question 3

If a mountain bike originally cost the retailer $299.95, how much will a customer have to pay for it, if it is marked up by $85.50?

A) $385.45
B) $214.45
C) $413.25
D) $219.86

Answer 3

$385.45

Question 4

A high-definition TV costs a company $3,300 to manufacture. If it sells for $6,732, what is the percent markup based on cost? (Round to the nearest whole percent)

A) 51%
B) 104%
C) 49%
D) 108%

Question 5

For any given item, the percent markup based on selling price is always ____________________ than the corresponding percent markup based on cost.

Question 6

To manufacture a certain desk, it costs $135. If the desired percent markup based on cost is 25%, how much should each desk sell for?

A) $133.75
B) $126.56
C) $143.44
D) $168.75

Question 7

The practice of calculating the markup as a percentage of the ____________________ is used by most retailers.

Question 8

Seasonal goods are products that undergo seasonal ____________________ in sales, such as fashion apparel and holiday merchandise.

Question 9

____________________ expenses are all business expenses, other than cost of merchandise, required to operate a business.

Question 10

Products that have a certain shelf life, and then no value at all, are called ____________________ goods.

Question 11

A dining set costs a company $2,300 to manufacture. If it sells for $4,945, what is the percent markup based on cost?

A) 15.00%
B) 46.51%
C) 115.00%
D) 53.49%

Question 12

The amount added to the cost of an item to cover the operating expenses and profit is known as the ____________________.

Question 13

A wholesaler sells an organ for $1,730. What is the percent markup based on selling price, if the wholesaler paid $800 for the piano? (Round to the nearest whole percent)

A) 54%
B) 39%
C) 46%
D) 217%

Question 14

A price reduction from the original selling price of merchandise is known as a(n) ____________________.

Question 15

Find the cost of a radio that sells for $276.45 and has a markup of $36.95.

A) $293.50
B) $313.40
C) $239.50
D) $255.65

Question 16

The selling price for a fax machine is $341.67. What percent of the sale price is the markup, if the cost of the fax machine was $205? (Round to the nearest whole percent)

A) 40%
B) 67%
C) 60%
D) 20%

Question 17

Find the markup on a computer system that sells for $2,355.90 but costs $1,849.95.

A) $505.95
B) $4,205.85
C) $2,355.90
D) $1,849.95

Question 18

The basic retailing equation states that the selling price of an item is equal to the ____________________ plus the markup.

Question 19

Raising prices back to the original selling price after a sale is over is called ____________________.

Question 20

A customer just paid $318 for a Blu-ray player. If the cost was 60% of selling price what was the mark up amount?

A) $237.08
B) $127.20
C) $198.75
D) $298.92

Question 21

A buyer just paid $50.98 for a calculator. If 29% of that amount was the seller's markup then what did the calculator cost the seller in the first place?

A) $19.48
B) $35.45
C) $25.98
D) $36.20

Question 22

A hand dryer that previously sold for $31 has been reduced to $24.50. What is the markdown percent? (Round to the nearest whole percent)

A) 27%
B) 24%
C) 21%
D) 33%

Question 23

Find the percent markup based on selling price, if the percent markup based on the cost is 14%. (Round to the nearest tenth percent)

A) 86.0%
B) 12.3%
C) 48.6%
D) 15.9%

Question 24

A purchaser just paid $32,352.94 for a pickup truck. If 49% was the seller's markup, based on the selling price, then what was the cost of the pickup truck? (Round to the nearest whole dollar)

A) $16,500.00
B) $15,852.94
C) $15,800.00
D) $16,000.00

Question 25

A purchaser just paid $48,727.27 for a Crossover vehicle. If the markup based on cost was 45%, what was the cost of the crossover vehicle? (Round to the nearest whole dollar)

A) $21,927
B) $33,605
C) $26,800
D) $22,900

Question 26

A purchaser paid $1,539.13 for a computer system that originally cost $1,215.91. If the markup was 21% of the $1,539.13 selling price, then what is the percent markup based on cost? (Round to the nearest tenth percent)

A) 26.6%
B) 81.0%
C) 79.7%
D) 35.1%

Question 27

The markup on an animal cage is 44% of the sale price. If the birdcage sells for $45.71, what was the cost to the nearest cent?

A) $25.71
B) $31.51
C) $14.80
D) $25.60

Question 28

It costs $1,075 to manufacture a table. If the table sells for $1,578.25, what is the percent markup based on selling price? (Round to the nearest whole percent)

A) 27%
B) 20%
C) 18%
D) 32%

Question 29

A customer just paid $35,620 for a delivery van. If the percent markup based on cost is 30%, what was the cost?

A) $27,400.00
B) $24,934.00
C) $25,659.00
D) $20,741.18

Question 30

The selling price for a sail boat is $9,000. What is the percent markup based on selling price, if the cost of the fishing boat was $6,600? (Round to the nearest whole percent)

A) 60%
B) 33%
C) 27%
D) 18%

Question 31

It costs $1,540 to manufacture a violin. If the violin sells for $1,905, what is the percent markup based on selling price? (Round to the nearest whole percent)

A) 19%
B) 29%
C) 38%
D) 77%

Question 32

If the markup of a product is twice its cost, what is the percent of markup on this product based on its selling price to the nearest percent?

A) 67%
B) 63%
C) 33%
D) 25%

Question 33

The markup on a desk should be 31% based on selling price. If the seller paid $240 for one, then how much should it sell for to achieve the desired markup?

A) $314.40
B) $347.83
C) $774.19
D) $405.60

Question 34

The markup on a home spa should be 20% based on selling price. If the seller paid $5,900 for one, then how much should it be sold for to achieve the desired markup?

A) $7,375.00
B) $6,333.33
C) $6,170.00
D) $8,330.34

Question 35

The percent markup on a video game is known to be 108% based on cost. If the seller paid $35 for one, then what would be the corresponding percent markup based on the sale price? (Round to the nearest tenth percent)

A) 51.9%
B) 355.8%
C) 31.2%
D) 28.0%

Question 36

The percent markup on a tricycle is known to be 24% based on selling price. If the seller paid $24.50 for one, then what would be the corresponding percent markup based on the cost? (Round to the nearest tenth percent)

A) 76.0%
B) 29.4%
C) 24.7%
D) 31.6%

Question 37

To manufacture a dining set, it costs $1,400. If the desired percent markup based on cost is 85%, how much should each dining set sell for?

A) $1,610.00
B) $2,590.00
C) $1,647.06
D) $3,235.00

Question 38

A client just paid $40,500 for a diamond necklace. If the percent markup based on cost is 115%, what was the cost?

A) $17,635.71
B) $18,837.21
C) $37,237.76
D) $35,217.39

Question 39

The markup on a new van should be 30% based on selling price. If the seller paid $25,550 for one, then how much should it be sold for to achieve the desired markup?

A) $26,122.50
B) $36,500.00
C) $45,255.71
D) $28,536.25

Question 40

A car broker purchased a sports car for $37,500. What selling price should be used, if the markup is supposed to be 32% based on selling price to the nearest dollar?

A) $46,300
B) $85,936
C) $46,200
D) $55,147

Question 41

A desktop computer costs a company $315.42 to manufacture. If it sells for $827, what is the percent markup based on cost? (Round to the nearest whole percent)

A) 58%
B) 114%
C) 162%
D) 20%

Question 42

A dishwasher that previously sold for $609.99 has been reduced to $573.39. What is the markdown percent? (Round to the nearest whole percent)

A) 10%
B) 7%
C) 6%
D) 2%

Question 43

Find the cost of a crib that sells for $1,742.25 and has a markup of $249.95.

A) $1,992.20
B) $1,492.30
C) $1,239.50
D) $1,500.00

Question 44

The wholesale cost of a speedboat is $11,400. The original markup was 26% based on selling price. Find the final sale price after the following series of price changes: a markdown of 9%, a markdown of 46%, and a markup of 38%. (Round each selling price to the nearest cent)

A) $14,364.00
B) $9,740.69
C) $13,071.24
D) $10,446.90

Question 45

The wholesale cost of a desk is $490. The original markup was 69% based on selling price. Find the final sale price after the following series of price changes: a markup of 30%, a markdown of 13%, and a markdown of 36%. (Round each intermediate selling price to the nearest cent)

A) $599.41
B) $1,144.14
C) $645.52
D) $616.07

Question 46

At a red-tag sale, all items with red tags have been marked down by 49%. What should be the sale price of a DVD player having a red tag, if the pre-sale price was $234.95?

A) $185.95
B) $115.13
C) $119.82
D) $210.65

Question 47

At a clearance sale, everything has been marked down 13%. How much did a car originally sell for, if its current price is $12,962.99?

A) $11,277.80
B) $16,851.89
C) $14,899.99
D) $14,388.94

Question 48

A markup of 33% based on cost is desired for a load of 800 bushels of peanuts. They were purchased at $5.85 per bushel. What should the selling price per bushel be after adjusting for an anticipated 21% spoilage rate? (Round answer to the nearest cent)

A) $7.78
B) $3.91
C) $10.56
D) $9.85

Question 49

A dress is currently on sale for $54.49. If the markdown percent is 21%, what was the original price to the nearest cent?

A) $68.97
B) $70.08
C) $89.38
D) $98.25

Question 50

The wholesale cost of a video game is $459.45. The original markup was 51% based on selling price. Find the final sale price after the following series of price changes: a markup of 24%, a markup of 17%, and a markdown of 10%. (Round each selling price to the nearest cent)

A) $2,224.31
B) $510.45
C) $1,224.31
D) $1,259.73

Question 51

500 pounds of apples were purchased at $0.35 per pound. The desired markup is 30% based on selling price, but 18% spoilage is expected. What should the selling price per pound be? (Round your answer to the nearest cent)

A) $0.46
B) $0.61
C) $0.55
D) $0.50

Question 52

The markup on a new diamond ring should be 25% based on selling price. If the seller paid $4,525.00 for one, then how much should it be sold for to achieve the desired markup?

A) $5,756.25
B) $5,000.00
C) $4,550.00
D) $6,033.33

Question 53

The wholesale cost of a Digital Sound system is $1,850. The original markup was 61% based on selling price. Find the final sale price after the following series of price changes: a markup of 14%, a markup of 47%, and a markdown of 30%. (Round each intermediate selling price to the nearest cent)

A) $5,564.51
B) $2,006.26
C) $3,493.96
D) $1,259.73

Question 54

The spoilage rate on a shipment of 100 pounds of bananas is expected to be 20%. They were purchased at a cost of $0.23 per pound. What should the selling price per pound be to achieve a markup of 16% based on selling price? (Round answer to the nearest cent)

A) $0.34
B) $0.39
C) $0.24
D) $0.30

Question 55

The wholesale cost of a delivery van is $31,300. The original markup was 26% based on selling price. Find the final sale price after the following series of price changes: a markup of 46%, a markup of 15%, a markdown of 40%, and a markup of 14%. (Round each selling price to the nearest cent)

A) $45,292.02
B) $57,579.48
C) $48,575.74
D) $39,729.84

Question 56

A mattress is currently on sale for $504.96. If the markdown percent is 36%, what was the original price?

A) $323.17
B) $789.00
C) $181.86
D) $798.00

Question 57

You can buy a mountain bike on sale for only $592.97. What is the percent markdown, if the original price was $689.50? (Round to the nearest whole percent)

A) 16%
B) 86%
C) 15%
D) 14%

Question 58

The spoilage rate on a shipment of wheat is expected to be 20%. It was purchased at a cost of $5.35 per bushel. What should the selling price per bushel be to achieve a markup of 6% based on selling price? (Round your answer to the nearest cent)

A) $5.67
B) $7.09
C) $5.57
D) $7.11

Question 59

300 pounds of oranges were purchased at $0.24 per pound. The desired markup is 50% based on selling price, but 21% spoilage is expected. What should the selling price per pound be? (Round your answer to the nearest cent)

A) $0.61
B) $0.47
C) $0.52
D) $0.55

Question 60

A television set that previously sold for $319.95 has been reduced to $303.95. What is the markdown percent? (Round to the nearest whole percent)

A) 12%
B) 6%
C) 8%
D) 5%

Question 61

Markdowns should be regarded as losses.

Question 62

Markdowns are frequently used in retailing because of errors in initial pricing or merchandise selection.

Question 63

In markdown calculations, the original cost of the merchandise is used as the base.

Question 64

Most retailers use cost figures as the basis for their markups, because these figures are readily available to them.

Question 65

The percent markup based on selling price is always lower than the corresponding percent markup based on cost.

Question 66

The basic retailing equation states that the cost of an item is not equal to the selling price plus the markup.

Question 67

The markdown is the difference between the cost and the selling price of an item.

Question 68

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 69

The basic retailing equation states that the cost of an item is equal to the selling price plus the markup.

Question 70

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 71

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 72

Operating expenses are known as overhead expenses.

Question 73

Seasonal goods don't undergo markups and markdowns during their selling season.

Question 74

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 75

The amount added to the cost of an item to cover operating expenses and profit is sometimes called margin.

Question 76

To manufacture a certain cabinet, it costs $202.48. If the desired percent markup based on cost is 15%, how much should each desk sell for? (Round to the nearest cent)

A) $333.75
B) $232.85
C) $217.48
D) $168.75

Question 77

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 78

Seasonal goods may undergo many markups and markdowns during their selling season.

Question 79

Calculate the missing information, rounding dollars to the nearest cent and percents to the nearest tenth percent:

Question 80

Markdowns should not be regarded as losses.