Deck 4: Mathematics of Merchandising

Question 1

A DVD player has a list price of $249 and is subject to a trade discount of 35%. Calculate the net price.

A) $411
B) $336
C) $214
D) $162
E) $87

Answer 1

$162

Question 2

What is the list price of a sofa that has a net price of $1,119 and a trade discount of 26.7%?

A) $1,356
B) $1,418
C) $1,527
D) $1,744
E) $1,939

Answer 2

$1,527

Question 3

How many employees will be cut one year from now?

A) 6,840
B) 1,315
C) 2,280
D) 3,040
E) 2,098

Answer 3

2,098

Question 4

The difference between the list price and the net price on a motorbike is $772. The rate of trade discount is 27%. What is the list price?

A) $$1,057
B) $2,859
C) $3,187
D) $981
E) $1,833

Question 5

Calculate the net price of a snow blower that has a list price of $1,450 and is subject to a trade discount of 27.5%.

A) $1,175
B) $2,000
C) $1,137
D) $1,051
E) $992

Question 6

The net price on an item is $327. The list price is $855. What is the rate of trade discount?

A) 61.8%
B) 52.8%
C) 44.0%
D) 38.2%
E) 16.1%

Question 7

Calculate the net price of a vacuum cleaner that has a list price of $699 and is subject to a trade discount of 35%

A) $245
B) $454
C) $664
D) $755
E) $944

Question 8

Ace Fasteners Ltd. offers Bob's Hardware a trade discount of 44% on all products. Calculate the total list price of a shipment for which Bob's is charged $859.

A) $481
B) $665
C) $1,237
D) $1,340
E) $1,534

Question 9

The 55% trade discount on an item is equal to $509. What is the net price?

A) $355
B) $488
C) $667
D) $789
E) $416

Question 10

After a trade discount of 37% a set of patio furniture is sold at a net price of $577. Calculate the list price.

A) $941
B) $916
C) $790
D) $614
E) $364

Question 11

A 24% trade discount is equal to $365. What is the list price?

A) $453
B) $1,156
C) $1,521
D) $993
E) $1,799

Question 12

The list price is $593 and the net price is $318. What is the trade discount rate?

A) 53.6%
B) 27.5%
C) 72.5%
D) 46.4%
E) 86.5%

Question 13

Martin Auto Parts charges Sam's Service Centre $386 for a rebuilt transmission that has a list price of $925. What is the rate of trade discount?

A) 22.9%
B) 32.2%
C) 40.0%
D) 58.3%
E) 66.7%

Question 14

What is the net price of an item if the 17.5% trade discount is equal to $32.44?

A) $381
B) $185
C) $153
D) $217
E) $92

Question 15

How many employees will the employer have after all cuts?

A) 31,548
B) 29,280
C) 31,160
D) 34,960
E) 6,840

Question 16

Calculate the trade discount rate on an item that lists for $1,950 and has a net price of $1,433.

A) 36.1%
B) 73.5%
C) 26.5%
D) 63.9%
E) 51.7%

Question 17

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

Question 18

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

Question 19

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

Question 20

The net price of a computer that is subject to a trade discount of 25% is $1,251. What is the list price?

A) $938
B) $1,276
C) $1,564
D) $1,600
E) $1,668

Question 21

If the trade discount series is 40%/15%/10% and the net price is $555, what is the list price?

A) $916
B) $1,209
C) $1,421
D) $708
E) $591

Question 22

The list price of a garden tractor is $2,899. The trade discount series is 20%/12%. Calculate the net price of the tractor.

A) $2,041
B) $1,971
C) $1,885
D) $1,842
E) $1,627

Question 23

An invoice for $50,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. If the company wants to reduce the outstanding balance to $25,000, how much should they pay on March 26?

A) $24,250
B) $25,000
C) $24,500
D) $25,500
E) $25,750

Question 24

What single discount rate is equivalent to multiple discounts of 20%, 5%, 2%?

A) 25.52%
B) 27%
C) 63%
D) 74.48%
E) 23.97%

Question 25

Given the following notation for an invoice: 4/10,n/30 What is the discount period?

A) 4 days
B) 10 days
C) 20 days
D) 30 days
E) None of these.

Question 26

An invoice for $25,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. A payment of $15,000 is made on March 26. What is the outstanding balance?

A) $9,550.00
B) $9,700.00
C) $10,000.00
D) $10,300.00
E) $9,693.88

Question 27

When does the credit period end?

A) March 26
B) April 15
C) April 16
D) April 21
E) none of these

Question 28

The current price of Acme stock is $5.80. The stock is down 90% from its price one year ago. What was the stock price one year ago?

A) $11.02
B) $6.44
C) $6.38
D) $65.00
E) $58.00

Question 29

What single rate of discount would be equivalent to a series of 25%/18%/10%?

A) 55.4%
B) 53.0%
C) 41.7%
D) 34.3%
E) 44.7%

Question 30

An invoice for $45,780 has terms of 3/15, n/90. The date of the invoice is March 10. What payment on March 23 would be enough to settle the debt?

A) $44,407
B) $38,913
C) $41,660
D) $45,780
E) $44,219

Question 31

When does the discount period end?

A) March 26
B) April 15
C) April 16
D) April 21
E) none of these

Question 32

An invoice for $20,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17^th. A payment of $10,000 is made on March 26. How much is credited to the account?

A) $10,200
B) $10,150
C) $9,800
D) $9,850
E) $10,000

Question 33

A trade discount series of 30%/15%/5% is offered on a product that has a list price of $8,900. What is the net price?

A) $4,450
B) $5,031
C) $6,555
D) $7,221
E) $7,925

Question 34

Given the following notation for an invoice: 4/10,n/30 What is the discount?

A) 20%
B) 10%
C) 4%
D) 30%
E) None of these

Question 35

An invoice for $620 dated November 5 with payment terms of 3/10, 2/15, n/30, was paid in full on November 15. What was the amount paid?

A) $18.60
B) $613.80
C) $620.00
D) $607.60
E) $601.40

Question 36

If the trade discount series is 30% / 20% / 4% and the net price is $377, what is the list price?

A) $928
B) $1,335
C) $2,027
D) $701
E) $866

Question 37

What single rate of discount would be equivalent to a series of 15% / 8% / 4%?

A) 48.0%
B) 27.0%
C) 24.9%
D) 9.99%
E) 21.4%

Question 38

An invoice for $6,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3^rd. A payment of $3,000 is made on September 12^th. What is the outstanding balance?

A) $3,000
B) $2,955
C) $2,940
D) $3,060
E) $3,045

Question 39

After discounts of 20% and 10%, an item sold for $115.50. What was the amount of the discount?

A) $32.34
B) $385.00
C) $83.16
D) $80.85
E) $44.92

Question 40

An invoice for $7,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3. If the company wants to reduce the outstanding balance to $4,000, how much should they pay on September 12?

A) $3,000
B) $2,940
C) $2,955
D) $3,920
E) $3,940

Question 41

An invoice for $2,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. A payment of $1500 is made on October 20. How much is credited to the account?

A) $1,522.50
B) $1,530.61
C) $1,560.60
D) $2,537.50
E) $1,522.84

Question 42

An invoice for $75,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $50,000. How much is credited to their account?

A) $49,000.00
B) $48,500.00
C) $50,000.00
D) $51,020.41
E) $51,546.39

Question 43

An invoice for $40,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on March 28. What payment April 8 would reduce the outstanding balance to $20,000?

A) $19,600
B) $20,000
C) $20,400
D) $20,600
E) $19,400

Question 44

An invoice for $2,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 18. What payment will settle the invoice on October 11?

A) $2,450.00
B) $2,500.00
C) $2,200.00
D) $2,462.50
E) $2,125.00

Question 45

An invoice dated October 16 has payment terms of 2/20, n/45. On what date would the cash discount expire?

A) October 26
B) November 30
C) November 5
D) October 18
E) December 7

Question 46

An invoice for $9,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3. The company sent a cheque on September 12 for $5,000. What is their outstanding balance?

A) $4,000.00
B) $3,897.96
C) $3,900.00
D) $3,925.00
E) $3,923.86

Question 47

An invoice for $3,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. If the company wants to reduce the outstanding balance to $2,000, how much should they pay on October 10?

A) $1,470.00
B) $1,477.50
C) $1,530.00
D) $1,522.50
E) $1,500.00

Question 48

An invoice for $8,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3. The company sent a cheque on September 12 for $2,500. How much is credited to their account?

A) $2,462.50
B) $2,500
C) $2,551.02
D) $2,537.50
E) $2,450

Question 49

An invoice for $7,000 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 25. A payment is sent on October 10 for $3,000. What is the outstanding balance?

A) $3,940.00
B) $3,955.00
C) $3,938.78
D) $4,000.00
E) $3,954.31

Question 50

An invoice dated January 22 has payment terms of 3/25, n/90. On what date would the cash discount expire?

A) February 1
B) February 16
C) February 28
D) March 3
E) April 22

Question 51

The payment terms on a $2,433 invoice dated May 6 are 2/10, n/30. What payment on May 15 would pay off the debt?

A) $2,190
B) $2,433
C) $2,384
D) $1,845
E) $2,406

Question 52

An invoice for $30,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. What payment April 14 would reduce the outstanding balance to $15,000?

A) $14,550
B) $14,700
C) $15,000
D) $15,300
E) $15,450

Question 53

An invoice for $35,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. What payment April 14 would reduce the outstanding balance to $25,000?

A) $9,700
B) $10,000
C) $9800
D) $10,200
E) $10,300

Question 54

An invoice for $25,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. A payment of $14,000 was made on April 14. How much was credited to the account?

A) $14,280.00
B) $14,420.00
C) $14,432.99
D) $14,285.71
E) $14,000.00

Question 55

An invoice for $10,000 dated September 10 with terms 3/10, 1½/20, n/30, EOM is received in the mail on September 25. A payment is sent on October 11 for $4,000. What is the outstanding balance?

A) $5,940.00
B) $6,000.00
C) $5,918.37
D) $5,939.08
E) $5,920.00

Question 56

An invoice for $4,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. What payment would settle the invoice on October 15?

A) $4,500.00
B) $4,432.50
C) $4,410.00
D) $4,590.00
E) $4,567.50

Question 57

An invoice for $60,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $40,000. What is their outstanding balance?

A) $20,000.00
B) $18,762.89
C) $19,200.00
D) $18,800.00
E) $19.183.67

Question 58

An invoice for $50,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 17. The shipment of goods was received on March 29. What payment would settle the invoice on April 9?

A) $48,500
B) $50,000
C) $49,500
D) $48,000
E) $49,000

Question 59

An invoice for $45,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. A payment of $30,000 was made on April 14. What is the outstanding balance?

A) $14,400.00
B) $14,100.00
C) $15,000.00
D) $14,072.16
E) $14,387.76

Question 60

A $7,350 invoice dated August 3 has payment terms of 4/10, 2/30, n/60. If the invoice is paid on August 20 how much must the payment be?

A) $7,497
B) $6,832
C) $6,615
D) $7,056
E) $7,203

Question 61

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 final selling price?

A) $352.80
B) $211.68
C) $117.98
D) $86.43
E) $52.10

Question 62

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%

Question 63

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

Question 64

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

Question 65

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

Question 66

When does the discount period end?

A) March 26
B) April 15
C) April 16
D) April 21
E) none of these

Question 67

Parker Transport received a bill for $11,400 dated June 8 with payment terms of 3/15, n/45. What payment on June 22 would reduce the amount owing to $4,000?

A) $7,178
B) $7,058
C) $7,400
D) $3,880
E) $9,690

Question 68

Sally sent a cheque for $8,000 on June 15 in response to an invoice for $12,000 dated June 8 with terms 5/10, n/30. What balance did Sally still owe?

A) $4,000.00
B) $8,400.00
C) $3,578.95
D) $8,421.05
E) $3,600.00

Question 69

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

Question 70

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

Question 71

When does the credit period end?

A) March 26
B) April 15
C) April 16
D) April 21
E) none of these

Question 72

Mack the Mover received a bill for $7,490 dated April 17 with payment terms of 4/20, n/90. What payment on May 4 would reduce the amount owing to $2,500?

A) $4,990
B) $5,019
C) $5,992
D) $4,690
E) $4,790

Question 73

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%

Question 74

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

Question 75

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

Question 76

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%

Question 77

An invoice for $5,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3^rd. A payment of $2,000 is made on September 12^th. How much is credited to the account?

A) $2,030
B) $2,000
C) $2,040
D) $1,970
E) $1,930.60

Question 78

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

Question 79

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%

Question 80

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