Question 1

Sonic Boom obtained a sound system for $2,400 less 30% and 15%. The system was originally priced so that, when sold in a "20% off" sale, the store's overhead and operating profit represent 25% and 15%, respectively, of the sale price. In a Midnight Madness Special, the system was sold at a "  off" special price.
a) What was the original "regular price"?
b) What was the profit or loss at the special price?

Accepted Answer

The answer of Sonic Boom obtained a sound system for...

Question 2

Merchandise with a wholesale price of $4,926 is purchased less 55% and 22%. If the retail price is $3,074, determine the mark-up on cost.

Accepted Answer

The answer of Merchandise with a wholesale price of $4,926...

Question 3

Office furniture was purchased by a retailer for $506 less 32% and 9%. There is a 39% mark-up on cost and operating expenses are 14% of selling price. If the retailer put the furniture on sale to realize an 18.15% mark-up, determine the price it was sold.

Accepted Answer

The answer of Office furniture was purchased by a retailer...

Question 4

A sweater sells for $130.50. Overhead expenses are 25% of cost and operating profit is 20% of cost. What rate of markdown will price the sweater at the break-even price?

Accepted Answer

The answer of A sweater sells for $130.50. Overhead expenses...

Question 5

An item costs $63. The selling price is set to include a profit of 25% of the selling price and estimated overhead expenses of 30% of the selling price. What is the rate of mark-up on cost?

Accepted Answer

The answer of An item costs $63. The selling price...

Question 6

If the rate of mark-up on selling price of lettuce in a grocery store is 60% of the selling price, what is the rate of mark-up on cost?

Accepted Answer

The answer of If the rate of mark-up on selling...

Question 7

Mavis Industries sells industrial fans that have a list price of $587.50. The trade discount that they offer to Don Ellis Construction is 37%. What is the net price?
A) $217
B) $370
C) $551
D) $625
E) $806

Accepted Answer

The net price is calculated by subtracting the discount from the list price. The discount is 37% of $587.50, which is $217.375. Subtracting this from the list price gives a net price of $370.125, which rounds to $370.

Question 8

A 12½% discount allowed on an article amounted to $25.50. What was the list price?
A) $204.00
B) $229.50
C) $3.19
D) $29.14
E) $178.50

Accepted Answer

The discount amount of $25.50 represents 12.5% of the list price. To find the list price, divide the discount amount by the discount rate: $25.50 / 0.125 = $204.

Question 9

A product with a wholesale price of $4,524 is sold less 49% and 17%. The retail price of the product is $3,070. Determine the mark-up on cost.

Accepted Answer

The answer of A product with a wholesale price of...

Question 10

The wholesale price of an industrial part is $5,523 less 37% and 25%. The retailer has a mark-up on cost is 29.83%. Operating expenses for the retailer is 35% of selling price. If the part is sold for $2,879.80, determine the rate of mark-up actually realized.

Accepted Answer

The answer of The wholesale price of an industrial part...

Question 11

Furniture Warehouse bought freezers for $1,800 less 33  % and 5%. The store's overhead works out to 30% of cost. The freezers are initially priced so that a profit of 16⅔% of cost will be realized when a freezer is sold at a "15% off" price.
a) What is the initial full rate of mark-up on cost?
b) During its Scratch-and-Save sale, customers qualify for an extra discount of either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25%, respectively. What is the store's profit or loss per freezer at each of these discounts?

Accepted Answer

The answer of Furniture Warehouse bought freezers for $1,800 less...

Question 12

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?
A) $192,000.00
B) $877,363.20
C) $191,557.63
D) $8773.63
E) $201,216.00

Accepted Answer

The net proceeds are the amount the vendor receives after the real estate commission is deducted. To find the selling price, divide the net proceeds by (1 - commission rate). Here, $182,784.00 / (1 - 0.048) = $192,000.00.

Question 13

An item purchased for $150, less 25%, was marked up by 40% of cost. The item was then reduced 30%. What was the sale price?

Accepted Answer

The answer of An item purchased for $150, less 25%,...

Question 14

A wholesaler sells a product for $4,637 less 36% and 19%. The retailer prices the product at 26.76% mark-up on cost. If operating expenses for the retailer are 25% of selling price, then determine the amount of operating expenses pertaining to the product.

Accepted Answer

The answer of A wholesaler sells a product for $4,637...

Question 15

M. Studios buys cameras for $750, less 10%, plus an additional volume discount of 8% on orders of 200 or more. The list price of the cameras is based on operating expenses of 20% of cost and a desired profit of 15% of cost. The store manager has 10 cameras remaining from an order of 250, and has decided to sell them at the breakeven price. What will be the rate of markdown?

Accepted Answer

The answer of M. Studios buys cameras for $750, less...

Question 16

A product is purchased for $1,460 less 30% and 5%. Mark-up on cost is 54%. Determine the retail price for the product.

Accepted Answer

The answer of A product is purchased for $1,460 less...

Question 17

A dining set was purchased by Sears for $903 less 28% and 6%. Sears marks up this product by 38% of cost. If operating expenses amounted to $67.23, then determine the operating expenses as a percentage of selling price.

Accepted Answer

The answer of A dining set was purchased by Sears...

Question 18

A retailer purchases mechanical equipment for $4,505 less 42% and 25%. The retail selling price is based on a 66.35% mark-up on cost. If the equipment is sold at a retail price of $2,771, determine the profit or loss realized.

Accepted Answer

The answer of A retailer purchases mechanical equipment for $4,505...

Question 19

An item is purchased for $300, less 35%, 20%, and 10%. The selling price is set so that estimated overhead expenses are 30% of the selling price, and operating profit is 25% of the selling price. What is the breakeven price of the item?

Accepted Answer

The answer of An item is purchased for $300, less...

Question 20

Larissa bought summer dresses for her boutique at a cost of $80 each. The dresses were marked up by 50% of the selling price. At the end of August, three of the dresses were unsold, and Larissa reduced the price to $90 each. What was the rate of markdown for the remaining dresses?

Accepted Answer

The answer of Larissa bought summer dresses for her boutique...

Quiz 4: Mathematics of Merchandising