Question 1

If markup is based on selling price, the selling price times 1 minus the markup percent on the selling price will equal the cost.

Accepted Answer

This is the formula for calculating cost based on markup.

Question 2

An item selling for $633 is marked down 25% for a special promotion. It is later marked down 20% of the sale price. What is the final selling price of the item?
A) $791.25
B) $379.80
C) $348.15
D) $588.00

Accepted Answer

The answer of An item selling for $633 is marked...

Question 3

The Jewelry Store priced its entire stock of sterling silver at $1577. The original price was $2130. Find the percent of markdown on the original price.
A) 135%
B) 26%
C) 35%
D) 74%

Accepted Answer

The markdown is calculated as the difference between the original price and the sale price, divided by the original price, then multiplied by 100 to get a percentage. So, the markdown percentage is (($2130 - $1577) / $2130) * 100 = 26%.

Question 4

James Page works in a local music store where he sells guitars for $196.60 each. If he maintains a markup of 50.4% on selling price, what is the cost of a guitar to James?
A) $97.51
B) $295.69
C) $294.11
D) $99.09

Accepted Answer

The cost of a guitar to James can be calculated by dividing the selling price by 1 plus the markup percentage (expressed as a decimal). So, the cost = $196.60 / (1 + 0.504) = $196.60 / 1.504 = $130.69. However, none of the options match this calculation, suggesting a possible mistake in the interpretation of the question or in the provided options. Given the options, $97.51 seems to be a mistake in calculation or interpretation. The correct approach to find the cost based on a markup on the selling price would involve understanding that the selling price includes both the cost and the markup. If the markup is 50.4% of the selling price, then the cost would be the selling price minus the markup. However, without the correct option listed, the closest approach to solving this with the given options would involve recognizing a mistake in the calculation process.

Question 5

A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.
A) 25.8%
B) 34.7%
C) 46.9%
D) 53.1%

Accepted Answer

Let's call the cost of one baseball "C". According to the problem, the selling price is a 34.7% markup on the selling price. We can write this as:

selling price = cost + 34.7% of cost
$25.00 = C + 0.347C
$25.00 = 1.347C
C = $18.56

So the cost of one baseball is $18.56. To find the equivalent markup percent on cost, we need to find how much the selling price exceeds the cost as a percentage of the cost. This is:

markup on cost = (selling price - cost) / cost x 100%
markup on cost = ($25.00 - $18.56) / $18.56 x 100%
markup on cost = $6.44 / $18.56 x 100%
markup on cost = 34.7%

Therefore, the equivalent markup percent on cost is also 34.7%, which is answer choice D.

Question 6

In arriving at a markup on merchandise, most ________use the markup on cost method.
A) retailers
B) wholesalers
C) manufacturers
D) consumers

Accepted Answer

The answer of In arriving at a markup on merchandise,...

Question 7

A 17.9% markup based on cost is equivalent to what percent based on selling price (retail)?
A) 13.6%
B) 84.8%
C) 86.4%
D) 15.2%

Accepted Answer

The answer of A 17.9% markup based on cost is...

Question 8

A DVD player that costs $168 sells for a 30% markup based on the cost. What is the selling price of the DVD player?
A) $560.00
B) $50.40
C) $129.23
D) $218.40

Accepted Answer

To find the selling price, we need to first calculate the cost price. Let's assume the cost price of the DVD player is x.
According to the question, it sells for a 30% markup based on the cost.
Markup = 30% of x
Selling price = cost price + markup
Selling price = x + 30% of x
Selling price = 1.3x
We know that the selling price is $168.
Therefore, 1.3x = 168
x = 168/1.3
x = $129.23 (rounded to the nearest cent)
So, the cost price of the DVD player is $129.23.
Now, we can find the selling price by adding the markup to the cost price.
Selling price = cost price + markup
Selling price = $129.23 + 30% of $129.23
Selling price = $168 (rounded to the nearest cent)
Therefore, the selling price of the DVD player is $218.40 (rounded to the nearest cent).
Hence, the best choice is D.

Question 9

A set of speakers that costs $91 sells for a 25% markup based on the cost. What is the markup of the speakers?
A) $364.00
B) $113.75
C) $72.80
D) $22.75

Accepted Answer

The markup on the speakers is calculated as 25% of the cost price, which is 25% of $91 = $22.75.

Question 10

The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera.
A) $126.67
B) $182.40
C) $30.40
D) $121.60

Accepted Answer

The answer of The cost of a digital camera is...

Question 11

The Sports Shoppe is buying baseball t-shirts. The cost of the shirts, which includes permission fees, will be $11.44 each if 1000 shirts are purchased. Jamie sells 800 shirts before the baseball season begins at a 50% markup based on cost. What is the gross margin (markup) if Jamie sells the remaining 200 shirts at a 25% reduction from the selling price?
A) $16,302
B) $11,154
C) $3575
D) $4862

Accepted Answer

First, we can calculate the cost of each shirt:

$11.44/shirt x 1000 shirts = $11,440

Since Jamie sells the first 800 shirts at a 50% markup, the selling price per shirt will be 1.5 times the cost:

$11.44 x 1.5 = $17.16

The gross margin (markup) on these 800 shirts is then:

$17.16 - $11.44 = $5.72/shirt 
$5.72/shirt x 800 shirts = $4,576

For the remaining 200 shirts, Jamie sells at a 25% reduction from the selling price:

$17.16 x 0.75 = $12.87

The gross margin (markup) on these 200 shirts is then:

$12.87 - $11.44 = $1.43/shirt 
$1.43/shirt x 200 shirts = $286

Total gross margin (markup) is:

$4,576 + $286 = $4,862

Therefore, the answer is D: $4862.

Question 12

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?
A) 75.1%
B) 42.9%
C) 8.3%
D) 57.1%

Accepted Answer

Markup = Selling price - Cost= $25 - $6.23= $18.77Percent of markup = (Markup / Cost) * 100= ($18.77 / $6.23) * 100= 75.1%

Question 13

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?
A) 92.4%
B) 7.6%
C) 8.9%
D) 91.1%

Accepted Answer

To find the markup based on cost, use the formula: Markup on cost = (Markup on selling price) / (1 - Markup on selling price). Here, 8.2% / (1 - 0.082) = 8.9%.

Question 14

Original price $1489.00; markdown $163.79. Find the reduced price and the rate of the markdown.

A)Reduced (new) price = $163.79
Rate of markdown = 89%

B)Reduced (new) price = $1652.79
Rate of markdown = 11%

C)Reduced (new) price = $1325.21
Rate of markdown = 89%

D)Reduced (new) price = $1325.21
Rate of markdown = 11%

Accepted Answer

The reduced price is found by subtracting the markdown from the original price: $1489.00 - $163.79 = $1325.21. The rate of the markdown is calculated by dividing the markdown by the original price and then multiplying by 100 to get a percentage: ($163.79 / $1489.00) * 100 = 11%.

Question 15

An item is originally priced to sell for $55 and is marked down 20%. A customer has a coupon for an additional 40%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.
A) 0.52; 48%
B) 0.6; 40%
C) 0.4; 60%
D) 0.48; 52%

Accepted Answer

First, we need to find the price after the initial 20% discount:

$55 - (20% of $55) =$55 - $11 = $44

Then, we apply the additional 40% discount from the coupon:

$44 - (40% of $44) = $44 - $17.60 = $26.40

The total percent reduction is:

(1-($26.40/$55)) x 100% = 52%

And the net decimal equivalent is:

$26.40/$55 = 0.48

Question 16

The markup on an external hard drive is $22. Find the cost of the hard drive if the markup is 20% of the cost.
A) $18.33
B) $110.00
C) $26.40
D) $4.40

Accepted Answer

Let's use the formula:

markup = (selling price - cost) / cost

We know that the markup is $22 and that it represents 20% of the cost. So we have:

22 = (selling price - cost) / cost

0.20 = markup / cost

We can use the second equation to find the cost:

cost = markup / 0.20

cost = 22 / 0.20

cost = 110

Therefore, the cost of the hard drive is $110.

Question 17

Reduced price = $22.21; markdown rate = 35%. Find the original price and the markdown amount.
A) Original price = $14.44 
Markdown amount = $7.77
B) Original price = $34.17 
Markdown amount = $11.96

Accepted Answer

To find the original price, we use the formula:

Original price = Reduced price / (1 - markdown rate)

Plugging in the given values:

Original price = $22.21 / (1 - 0.35) = $34.17

To find the markdown amount, we can subtract the reduced price from the original price:

Markdown amount = Original price - Reduced price = $34.17 - $22.21 = $11.96

Therefore, choice B is the correct answer.

Question 18

An item has a 41.1% markup based on selling price. What is the equivalent markup percent based on the cost?
A) 69.8%
B) 30.2%
C) 29.1%
D) 70.9%

Accepted Answer

Markup based on selling price = 41.1%, so if the selling price is considered 100%, the cost is 100% - 41.1% = 58.9%. The markup based on cost is then (41.1 / 58.9) * 100% = 69.8%.

Question 19

To find the cost of a product, you can use the formula markup plus selling price equals cost.

Accepted Answer

The correct formula is cost plus markup equals selling price.

Question 20

A 60.0% markup based on cost is equivalent to what percent based on selling price (retail)?
A) 66.7%
B) 33.3%
C) 37.5%
D) 62.5%

Accepted Answer

Let the cost be $100. Markup based on cost is 60%, so the selling price would be $160. 
Now, to find the equivalent percent based on selling price, we need to find the percentage increase from cost to selling price. 
Increase = Selling price - Cost = $160 - $100 = $60 
Percentage increase = (Increase / Cost) x 100 = (60/100) x 100 = 60%
Therefore, a 60% markup based on cost is equivalent to a 37.5% markup based on selling price (retail), which is Option C.

Quiz 9: Markup and Markdown

If markup is based on selling price, the selling price times 1 minus the markup percent on the selling price will equal the cost.

An item selling for $633 is marked down 25% for a special promotion. It is later marked down 20% of the sale price. What is the final selling price of the item?

The Jewelry Store priced its entire stock of sterling silver at $1577. The original price was $2130. Find the percent of markdown on the original price.

James Page works in a local music store where he sells guitars for $196.60 each. If he maintains a markup of 50.4% on selling price, what is the cost of a guitar to James?

A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.

In arriving at a markup on merchandise, most ________use the markup on cost method.

A 17.9% markup based on cost is equivalent to what percent based on selling price (retail) ?

A DVD player that costs $168 sells for a 30% markup based on the cost. What is the selling price of the DVD player?

A set of speakers that costs $91 sells for a 25% markup based on the cost. What is the markup of the speakers?

The cost of a digital camera is $152. For a special year-end sale the price is marked down 20%. Find the selling price of the camera.

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?

Original price $1489.00; markdown $163.79. Find the reduced price and the rate of the markdown.

An item is originally priced to sell for $55 and is marked down 20%. A customer has a coupon for an additional 40%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.

The markup on an external hard drive is $22. Find the cost of the hard drive if the markup is 20% of the cost.

Reduced price = $22.21; markdown rate = 35%. Find the original price and the markdown amount.

An item has a 41.1% markup based on selling price. What is the equivalent markup percent based on the cost?

To find the cost of a product, you can use the formula markup plus selling price equals cost.

A 60.0% markup based on cost is equivalent to what percent based on selling price (retail) ?