Question 1

Assume markup is based on selling price. Solve for the selling price (round to nearest cent):
25% markup on selling price
Actual cost $650
Selling price?

Accepted Answer

$650/.75 = $866.67.

Question 2

Match the following terms with their definitions.
-Markdowns

Accepted Answer

The answer of Match the following terms with their definitions.
-Markdowns
...

Question 3

Calculate the final selling price to the nearest cent (round each calculation to nearest cent as needed):
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Original } \
\text { Selling Price }
\end{array} & 1 \text { st Markdown } & \begin{array} { c } 
2 \text { nd } \
\text { Markdown }
\end{array} & \text { Markup } & \begin{array} { c } 
\text { Final } \
\text { Markdown }
\end{array} \
\hline \$ 6,000 & 9 \% & 13 \% & 4 \% & 9 \% \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the final selling price to the...

Question 4

Match the following terms with their definitions.
-Dollar markdown

Accepted Answer

The answer of Match the following terms with their definitions.
-Dollar...

Question 5

Sullivan's Handbags marks up its bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85.00. What is the most she could pay for the bag and still retain the 45% markup of the selling price?

Accepted Answer

C = $85 × (1 - .45); then C = $46.75.

Question 6

Assume markup is based on cost. If the cost of a table is $62 and it sells for $110, what is the percent of markup based on cost? Round to the nearest hundredth percent.

Accepted Answer

110 - 62 = 48; $48/$62 = 77.42%.

Question 7

Match the following terms with their definitions.
-Percent markup on selling price

Accepted Answer

The answer of Match the following terms with their definitions.
-Percent...

Question 8

Match the following terms with their definitions.
-Net income

Accepted Answer

The answer of Match the following terms with their definitions.
-Net...

Question 9

Assume markup is based on selling price. Complete:
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Selling Price } & \% \text { of Markup } & \begin{array} { c } 
\text { Dollar } \
\text { Markup }
\end{array} & \text { Cost } \
\hline \$ 750 & 30 \% & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Assume markup is based on selling price....

Question 10

Assume markup is based on cost. Solve for the actual cost (round to nearest cent):
Selling price $600
Markup % on cost 35%
Actual cost?

Accepted Answer

$600/1.35 = $444.44.

Question 11

Match the following terms with their definitions.
-Contribution margin

Accepted Answer

The answer of Match the following terms with their definitions.
-Contribution...

Question 12

Match the following terms with their definitions.
-Breakeven point

Accepted Answer

The answer of Match the following terms with their definitions.
-Breakeven...

Question 13

Match the following terms with their definitions.
-Dollar markup

Accepted Answer

The answer of Match the following terms with their definitions.
-Dollar...

Question 14

Breck Hardware purchased from Black & Decker 10 Dustbusters for $24.95 each. What should Breck charge its customers for each Dustbuster if it has a 39.5% markup on cost? (Round to the nearest cent.)

Accepted Answer

24.95 × 1.395 = $34.80525; Rounded to the nearest cent = $34.81.

Question 15

Convert a 40% markup percent on cost to markup percent on selling price. (Round to nearest hundredth percent.)

Accepted Answer

.40/(1 + .40)= 28.57%.

Question 16

Complete (round answers to nearest cent):
 $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Total Qty } \
\text { Bought }
\end{array} & \begin{array} { c } 
\text { Unit } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Markup \% on } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Sales }
\end{array} & \begin{array} { c } 
\% \text { That Will } \
\text { Spoil }
\end{array} & \begin{array} { c } 
\text { Selling Price } \
\text { Per Unit }
\end{array} \
\hline \text { Brownies } & 40 & \$ .70 & \mathrm {~A} & 40 \% & \mathrm {~B} & 10 \% & \mathrm { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Complete (round answers to nearest cent):
 \[\begin{array}...

Question 17

Match the following terms with their definitions.
-Perishables

Accepted Answer

The answer of Match the following terms with their definitions.
-Perishables
...

Question 18

Match the following terms with their definitions.
-Assume markup is based on cost. Complete:
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Cost } & \% \text { of Markup } & \begin{array} { c } 
\text { Amount of } \
\text { Markup }
\end{array} & \text { Selling Price } \
\hline \$ 500 & 30 \% & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Match the following terms with their definitions.
-Assume...

Question 19

Match the following terms with their definitions.
-Cost

Accepted Answer

The answer of Match the following terms with their definitions.
-Cost
...

Question 20

Match the following terms with their definitions.
-Gross profit

Accepted Answer

Gross profit is calculated as sales minus the cost of goods sold.

Quiz 8: Markups and Markdowns: Perishables and Breakeven Analysis

Assume markup is based on selling price. Solve for the selling price (round to nearest cent): 25% markup on selling price Actual cost $650 Selling price?

Match the following terms with their definitions. -Markdowns

Match the following terms with their definitions. -Dollar markdown

Sullivan's Handbags marks up its bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85.00. What is the most she could pay for the bag and still retain the 45% markup of the selling price?

Assume markup is based on cost. If the cost of a table is $62 and it sells for $110, what is the percent of markup based on cost? Round to the nearest hundredth percent.

Match the following terms with their definitions. -Percent markup on selling price

Match the following terms with their definitions. -Net income

Assume markup is based on cost. Solve for the actual cost (round to nearest cent): Selling price $600 Markup % on cost 35% Actual cost?

Match the following terms with their definitions. -Contribution margin

Match the following terms with their definitions. -Breakeven point

Match the following terms with their definitions. -Dollar markup

Breck Hardware purchased from Black & Decker 10 Dustbusters for $24.95 each. What should Breck charge its customers for each Dustbuster if it has a 39.5% markup on cost? (Round to the nearest cent.)

Convert a 40% markup percent on cost to markup percent on selling price. (Round to nearest hundredth percent.)

Match the following terms with their definitions. -Perishables

Match the following terms with their definitions. -Cost

Match the following terms with their definitions. -Gross profit