Question 1

To increase their sales compared their online competition, a toy shop marks down the regular price of $49.99 of a popular toy by 25%.
a) What is the markdown amount in this case?
b) What is the new (sale) price of the toy?

Accepted Answer

The answer of To increase their sales compared their online...

Question 2

A retailer bought 10 000 units of cell phone cases for $55 000.00. On delivery, it was realized that not all the cases were of the same quality. Hence they were classified as high quality, average quality and poor quality. The 4200 high quality cases were sold at a markup of 120% of cost, the 2800 average quality cases were sold at a markup of 80% of the cost, and the remaining were sold at cost price.
a) What is the unit selling price at which each of the three classifications were sold?
b) If overhead is 18% of the cost, what is the amount of profit realized on the purchase?

Accepted Answer

The answer of A retailer bought 10 000 units of...

Question 3

Budget Electronics bought slightly used computers for $275.00 less 29%. The store's overhead is 23% of the cost and the desired profit is 37.5% of cost.

Accepted Answer

The answer of Budget Electronics bought slightly used computers for...

Question 4

Unique Furniture bought coffee tables for $399.00 less 23%, 10%, 5.5%. The store's overhead expenses come out to be 30% of regular selling price and the target profit is 55% of regular selling price.
a) What is the maximum rate of markdown that the store can offer to break even?
b) What is the realized rate of markup based on cost if the items are sold at the break-even price?

Accepted Answer

The answer of Unique Furniture bought coffee tables for $399.00...

Question 5

A toy shop reduces the price of a popular toy from $89.99 to $69.99 to increase their sales compared their online competition.
a) What is the markdown amount in this case?
b) What is the rate of markdown?

Accepted Answer

The answer of A toy shop reduces the price of...

Question 6

A clothing retailer buys winter coats from one of its suppliers for $67.50. The regular selling price of the coats includes operational expenses of 46% of the selling price and a profit of 30% of the selling price. Due to an unexpected warm winters, the sales have been slow. The retailer decides to mark down this line of coats by 20% to increase sales. What is the operating profit or loss on the coats sold during the promotional sale?

Accepted Answer

The answer of A clothing retailer buys winter coats from...

Question 7

A clothing retailer buys winter coats from one of its suppliers for $67.50. The regular selling price of the coats includes operational expenses of 46% of the selling price and a profit of 30% of the selling price. Due to an unexpected warm winters, the sales have been extremely slow. With spring products arriving in the warehouse, the retailer decides to mark down this line of coats by 70% to clear out the inventory. What is the operating profit or loss on the coats sold during the promotional sale?

Accepted Answer

The answer of A clothing retailer buys winter coats from...

Question 8

The Great Outdoors buys camping tents for $160.00 less 35% for buying them out of season from the manufacturer. The store's markup is 45% of the sale price. To attract customers, the store advertises all camping gear to be sold at a discount of 20% of the regular selling price. What is the regular selling price of the camping tents?

Accepted Answer

The answer of The Great Outdoors buys camping tents for...

Question 9

A microwave oven costs a retailer $220.00. It carries a regular selling price on its price tag at a markup of 60% of the regular selling price. During a special promotion, the oven is marked down 30%. What is the sale price?

Accepted Answer

The answer of A microwave oven costs a retailer $220.00....

Question 10

Ice-Time purchased hockey skates for $220.00 less 12% and 7%. Expenses are 22% of the cost and the required profit is 45% of the cost. At the end of the winter season, the unsold skates were advertised at a discount of 50%. What operating profit or loss was realized on the sets sold at the end of the season?

Accepted Answer

The answer of Ice-Time purchased hockey skates for $220.00 less...

Quiz 6: Trade Discounts, Cash Discounts, Markup, and Markdown

To increase their sales compared their online competition, a toy shop marks down the regular price of $49.99 of a popular toy by 25%. a) What is the markdown amount in this case? b) What is the new (sale) price of the toy?

Budget Electronics bought slightly used computers for $275.00 less 29%. The store's overhead is 23% of the cost and the desired profit is 37.5% of cost.

A toy shop reduces the price of a popular toy from $89.99 to $69.99 to increase their sales compared their online competition. a) What is the markdown amount in this case? b) What is the rate of markdown?

A microwave oven costs a retailer $220.00. It carries a regular selling price on its price tag at a markup of 60% of the regular selling price. During a special promotion, the oven is marked down 30%. What is the sale price?