Question 1

A local dealer sells baseballs for $25.00 each. If this is a 31.6% markup on cost, find the equivalent markup percent on the selling price.

Accepted Answer

The answer of A local dealer sells baseballs for $25.00...

Question 2

An item is originally priced to sell for $175 and is marked down 20%. The store takes off an additional 20%, and a customer has a coupon for 10%. What is the total percent reduction for this item? Give the net decimal equivalent and total percent reduction.

Accepted Answer

The item is first reduced by 20%, making it $140. Then another 20% off makes it $112. Finally, a 10% coupon reduces it to $100.80. The total reduction is $74.20 from the original $175, which is approximately 42.4%.

Question 3

An item costs $1864 and is marked down twice due to sales. The first markdown rate is 10% and the second markdown rate is 20%. What is the final selling price?

Accepted Answer

The first markdown is 10%, so the item is now:
1864 - (0.10 x 1864) = 1677.60
The second markdown is 20%, so the item is now:
1677.60 - (0.20 x 1677.60) = 1342.08
Therefore, the final selling price is $1342.08.

Question 4

A jewelry store purchased 100 fashion watches for $3000. If the store sold 50 watches at $60, 40 watches at $54, and the rest at $30, find the total markup, the markup percent on selling price, and the equivalent markup percent on cost.

Accepted Answer

The store sold a total of 50+40=90 watches at a total revenue of 50*$60 + 40*$54 = $3000.

This means that the remaining 10 watches were sold at a total revenue of $3000 - $3000 = $0. Therefore, the average selling price for these 10 watches was $0/10 = $0.

The total cost of purchasing all 100 watches was $3000, so the average cost per watch was $3000/100 = $30.

Now we can calculate the markup and markup percentage:

Markup = Total revenue - Total cost = $3000 - $3000 = $0
Markup % on selling price = Markup / Total revenue * 100% = $0/$3000 * 100% = 0%
Equivalent markup % on cost = Markup / Total cost * 100% = $0/$3000 * 100% = 0%

Therefore, the total markup and the markup percentages are all 0, which means that there was neither a profit nor a loss on the sale of the watches.

Option D is the best choice as it correctly calculates the markup and markup percentages based on this analysis.

Question 5

An item has a 30.1% markup based on selling price. What is the equivalent markup percent based on the cost?

Accepted Answer

The markup based on cost can be found using the formula: Markup % based on cost = (Markup / Cost) * 100. Given a 30.1% markup based on selling price, the cost represents 100% - 30.1% = 69.9% of the selling price. Therefore, the markup based on cost is (30.1 / 69.9) * 100 = 43.1%.

Question 6

An item selling for $1681 is marked down 10% for a special promotion. It is later marked down 40% of the sale price. Because it still hasn't been sold, it is marked down an additional 20%. What is the final selling price of the item?

Accepted Answer

First, we need to find the sale price after the first discount:

Sale Price after 10% discount = Original Price - (10/100) * Original Price
Sale Price after 10% discount = 1681 - (0.1 * 1681)
Sale Price after 10% discount = 1681 - 168.1
Sale Price after 10% discount = 1512.90

Next, we need to find the sale price after the second discount:

Sale Price after 40% discount = Sale Price after 10% discount - (40/100) * Sale Price after 10% discount
Sale Price after 40% discount = 1512.90 - (0.4 * 1512.90)
Sale Price after 40% discount = 1512.90 - 605.16
Sale Price after 40% discount = 907.74

Finally, we need to find the sale price after the third discount:

Sale Price after 20% discount = Sale Price after 40% discount - (20/100) * Sale Price after 40% discount
Sale Price after 20% discount = 907.74 - (0.2 * 907.74)
Sale Price after 20% discount = 907.74 - 181.55
Sale Price after 20% discount = 726.19

Therefore, the final selling price of the item is $726.19.

Question 7

The Oak House had a markup of $24.87 on an oak table that they sold for $88.99. Find the cost and the percent of markup.

Accepted Answer

The cost of the oak table is found by subtracting the markup from the selling price: $88.99 - $24.87 = $64.12. The percent of markup is calculated by dividing the markup by the cost and then multiplying by 100 to get a percentage: ($24.87 / $64.12) * 100 = 38.8%.

Question 8

Markdown amount = $8.19; markdown rate = 22%. Find the original price and reduced price.

Accepted Answer

Let x be the original price.
The markdown amount is: 0.22x
The reduced price is: x - 0.22x = 0.78x
We have: 0.78x = 8.19
Solving for x, we get: x = 10.50

Therefore, the original price is $10.50 and the reduced price is $8.19.
Choice B is the only option that matches this outcome.

Question 9

A local dealer sells baseballs for $25 each. If $5.27 is the markup, what is the cost?

Accepted Answer

The cost is found by subtracting the markup from the selling price: $25.00 - $5.27 = $19.73.

Quiz 9: Markup and Markdown