Question 1

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the selling price of the set?
A) $252.00
B) $315.00
C) $327.60
D) $390.60
E) $372.00

Accepted Answer

The answer of A dining room set costs $400, less...

Question 2

M Studios sells a camera listed at $400, less 25%. Todd's Factory sells the same camera for $325. What rate of markdown would Todd's have to offer to match the reduced price at M Studios?
A) 7.7%
B) 8.3%
C) 8%
D) 7.5%
E) 8.5%

Accepted Answer

The answer of M Studios sells a camera listed at...

Question 3

Calculate the retail price of an item for which the retailer paid $120 and applied a mark-up on cost of 30% of cost.
A) $150
B) $156
C) $168
D) $171
E) $189

Accepted Answer

The answer of Calculate the retail price of an item...

Question 4

Rick's sells a motorcycle for $5000, less 10%. Todd's Motors sells the same motorcycle for $4250. What rate of markdown would Rick have to offer to match the price at Todd's?
A) 5.9%
B) 5.6%
C) 15%
D) 10%
E) 7.5%

Accepted Answer

First, let's find out what is 10% of $5000: 
10% of $5000 = ($5000 x 10) / 100 = $500

So Rick's sells the motorcycle for $5000 - $500 = $4500.

To match the price at Todd's, Rick's would have to sell the motorcycle for $4250.

We can find the markdown rate by subtracting the selling price from the original price, dividing that by the original price, and then multiplying by 100 to get a percentage:

Markdown rate = [(Original price - Selling price) / Original price] x 100

Markdown rate = [($5000 - $4250) / $5000] x 100

Markdown rate = ($750 / $5000) x 100

Markdown rate = 0.15 x 100

Markdown rate = 15%

Therefore, the correct answer is (B) 5.6%.

Question 5

A shovel costing $8.50 in August was marked up by 200%. In April of the following year, it was reduced by 80%. What was the sale price?
A) $3.40
B) $5.00
C) $1.70
D) $10.20
E) $5.10

Accepted Answer

The markup of 200% on the original price of $8.50 is:

$8.50 + (200% * $8.50) = $8.50 + $17.00 = $25.50

This means the new price after the markup is $25.50.

The reduction of 80% on the new price of $25.50 is:

$25.50 - (80% * $25.50) = $25.50 - $20.40 = $5.10

Therefore, the sale price is $5.10, which is answer choice E.

Question 6

What is the cost of an item for which the retail selling price is $860 and the margin is 25% of the selling price?
A) $215
B) $688
C) $645
D) $445
E) $1,147

Accepted Answer

The answer of What is the cost of an item...

Question 7

If Maury's Work Warehouse sets retail prices so that mark-ups are equal to 20% of cost, what is the cost of a pair of work boots that have a retail price of $129?
A) $108.00
B) $103.20
C) $101.91
D) $92.00
E) $86.50

Accepted Answer

The answer of If Maury's Work Warehouse sets retail prices...

Question 8

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the rate of markdown of the set?
A) 95.3%
B) 75.6%
C) 36.5%
D) 20.6%
E) 48.8%

Accepted Answer

The initial price after discounts is $400 * (1 - 0.30) * (1 - 0.10) = $252. The final price is $200. The markdown is calculated as (Original Price - Sale Price) / Original Price = ($252 - $200) / $252 = 20.6%. However, the correct calculation for the rate of markdown from the original price of $400 to the sale price of $200 is ($400 - $200) / $400 = 50%. None of the provided options accurately reflect this calculation, indicating a possible misunderstanding in the question's solution process. The closest option given the initial misunderstanding would be E) 48.8%, but this does not match the correct calculation from the original price.

Question 9

M Studios buys cameras at a unit cost of $125. Their operating expense is 45% per unit of cost, and their desired unit operating profit is 25% of cost. What is M Studios' rate of mark-up on selling price?
A) 60%
B) 45%
C) 25%
D) 41.2%
E) 40%

Accepted Answer

First, we need to calculate the total cost per unit:
Total Cost = Unit Cost + (Unit Cost * Operating Expense) + (Unit Cost * Desired Operating Profit)
Total Cost = $125 + ($125 * 0.45) + ($125 * 0.25)
Total Cost = $206.25

Next, we need to calculate the rate of mark-up on selling price:
Mark-Up = (Total Revenue - Total Cost) / Total Cost
Mark-Up = (Total Revenue / Total Cost) - 1

Assuming there are no other costs or expenses, the minimum selling price that would achieve the desired operating profit would be:
Selling Price = Total Cost / (1 - Desired Operating Profit)
Selling Price = $206.25 / (1 - 0.25)
Selling Price = $275

Therefore, the rate of mark-up on selling price would be:
Mark-Up = ($275 / $206.25) - 1
Mark-Up = 0.332
Mark-Up = 33.2%

To convert the rate of mark-up on selling price to a percentage, we need to multiply by 100:
Mark-Up % = 33.2% * 100
Mark-Up % = 41.2%

Therefore, the answer is D) 41.2%.

Question 10

M Studios buys cameras at a unit cost of $250. Their operating expense is 40% per unit of cost, and their desired unit operating profit is 30% of cost. What selling price should M Studios advertise for the camera?
A) $425
B) $350
C) $325
D) $320
E) $375

Accepted Answer

Unit Cost = $250
Operating Expense (40% of Unit Cost) = 0.4 x $250 = $100
Desired Operating Profit (30% of Unit Cost) = 0.3 x $250 = $75
Total Cost per unit = Unit Cost + Operating Expense + Desired Operating Profit = $250 + $100 + $75 = $425

Therefore, M Studios should advertise the camera at a selling price of $425 to achieve their desired profit margin.

Question 11

If Clarington Sporting Goods has to pay $88 for a pair of skates and then they apply a mark-up of 40% of cost, what is the selling price?
A) $82
B) $89
C) $123
D) $147
E) $176

Accepted Answer

The mark-up on the skates is 40% of $88, which is $35.20. Adding this to the original cost ($88 + $35.20), the selling price is $123.20, rounded to $123.

Question 12

A shirt costing $30 was marked up by 150% and then reduced by 50%. What was the sale price?
A) $22.50
B) $60
C) $45
D) $37.50
E) $52.50

Accepted Answer

Markup price = $30 x 150% = $45
Sale price after 50% reduction = $45 x 50% = $22.50
Therefore, the sale price of the shirt is $22.50.

Question 13

If a payment of $900 is made on March 20, what will be the new balance?
A) $918.00
B) $900.00
C) $918.37
D) $947.00
E) $946.63

Accepted Answer

The answer of If a payment of $900 is made...

Question 14

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of mark-up on cost?
A) 57.33%
B) 42.67%
C) 174.42%
D) 68.50%
E) 74.42%

Accepted Answer

The answer of Acme Shoes marked up a pair of...

Question 15

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the single equivalent trade discount?
A) 50.4%
B) 50%
C) 49.6%
D) 40%
E) 60%

Accepted Answer

The single equivalent trade discount is calculated by multiplying the complements of the discounts: (1-0.30)*(1-0.20)*(1-0.10) = 0.504, which means a 49.6% discount.

Question 16

When does the credit period end?
A) March 26
B) April 15
C) April 16
D) April 21
E) none of these

Accepted Answer

The answer of When does the credit period end?
A) March...

Question 17

An item regularly priced at $89.00 is marked down to the cost price for a clearance sale. If the item cost the retailer $40.05, what is the rate of markdown?
A) 45%
B) 49%
C) 55%
D) 22%
E) 122%

Accepted Answer

The answer of An item regularly priced at $89.00 is...

Question 18

M Studios buys cameras at a unit cost of $150. Their operating expense is 20% per unit of cost, and their desired unit operating profit is 30% of cost. What is M Studios' rate of mark-up on cost?
A) 33.3%
B) 20%
C) 50%
D) 30%
E) 25%

Accepted Answer

To find the mark-up percentage, we need to add the operating expense and desired profit percentage and express it as a percentage of the unit cost.

Operating expense per unit = 20% x $150 = $30
Desired profit per unit = 30% x $150 = $45
Total mark-up per unit = $30 + $45 = $75

Mark-up rate on cost = (mark-up per unit/cost per unit) x 100%
= ($75/$150) x 100%
= 50%

Therefore, the mark-up rate on cost is 50%.

Question 19

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the break-even price of the set?
A) $300.00
B) $390.60
C) $200.00
D) $325.00
E) $315.00

Accepted Answer

The answer of A dining room set costs $400, less...

Question 20

The retailer's cost is $86 and their rate of mark-up on selling price is 26%. Calculate the selling price.
A) $99
B) $108
C) $112
D) $116
E) $129

Accepted Answer

The answer of The retailer's cost is $86 and their...

Quiz 4: Mathematics of Merchandising

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the selling price of the set?

M Studios sells a camera listed at $400, less 25%. Todd's Factory sells the same camera for $325. What rate of markdown would Todd's have to offer to match the reduced price at M Studios?

Calculate the retail price of an item for which the retailer paid $120 and applied a mark-up on cost of 30% of cost.

Rick's sells a motorcycle for $5000, less 10%. Todd's Motors sells the same motorcycle for $4250. What rate of markdown would Rick have to offer to match the price at Todd's?

A shovel costing $8.50 in August was marked up by 200%. In April of the following year, it was reduced by 80%. What was the sale price?

What is the cost of an item for which the retail selling price is $860 and the margin is 25% of the selling price?

If Maury's Work Warehouse sets retail prices so that mark-ups are equal to 20% of cost, what is the cost of a pair of work boots that have a retail price of $129?

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the rate of markdown of the set?

M Studios buys cameras at a unit cost of $125. Their operating expense is 45% per unit of cost, and their desired unit operating profit is 25% of cost. What is M Studios' rate of mark-up on selling price?

M Studios buys cameras at a unit cost of $250. Their operating expense is 40% per unit of cost, and their desired unit operating profit is 30% of cost. What selling price should M Studios advertise for the camera?

If Clarington Sporting Goods has to pay $88 for a pair of skates and then they apply a mark-up of 40% of cost, what is the selling price?

A shirt costing $30 was marked up by 150% and then reduced by 50%. What was the sale price?

If a payment of $900 is made on March 20, what will be the new balance?

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of mark-up on cost?

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the single equivalent trade discount?

When does the credit period end?

An item regularly priced at $89.00 is marked down to the cost price for a clearance sale. If the item cost the retailer $40.05, what is the rate of markdown?

M Studios buys cameras at a unit cost of $150. Their operating expense is 20% per unit of cost, and their desired unit operating profit is 30% of cost. What is M Studios' rate of mark-up on cost?

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What is the break-even price of the set?

The retailer's cost is $86 and their rate of mark-up on selling price is 26%. Calculate the selling price.