Question 1

Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)

Accepted Answer

S = 7 / (1 - .33)= $10.45

Question 2

Find the cost and markup of a stove if it sells for $400 and is marked up 100% of the cost.

Accepted Answer

Cost = 400 / (1 + 1)= 400 / 2 = $200; Markup = 400 - 200 = $200

Question 3

Jorge Keegan sells lamps for $92.10 that cost him $62.00. What is Jorge's percent of markup based on the selling price? (Round to nearest hundredth percent.)

Accepted Answer

Markup = 92.10 - 62 = $30.10; Markup % = $30.10/$92.10 = 32.68%.

Question 4

Al Shelf knows his goods are marked up 36% on cost. If a TV cost Al $280, what would the selling price be?

Accepted Answer

$280 × 1.36 = $380.80.

Question 5

Blue Jeans Inc. sells jeans that cost $15.99 for a selling price of $42.95. What is the percent of markup based on cost? (Round to the nearest hundredth percent.)

Accepted Answer

Percent Markup = (42.95 - 15.99)/$15.99 = 168.61%.

Question 6

Jane Corporation produces fudge bars. Total fixed cost is $55,500. Each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. What is the breakeven point for Jane Corporation?

Accepted Answer

$55,500/$(4.95 - 3.10)= 55,500 /1.85 = 30,000.

Question 7

Mary's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming Mary wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?

Accepted Answer

TC = 1.5 × 200 = $300; TS = 300 + 300 × .4 = $420; Spoilage = .2 × 200 = 40; Selling Price = 420 / (200 - 40)= $2.63

Question 8

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

Accepted Answer

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

Question 9

Convert a 36% markup on selling price to the equivalent percent markup on cost.

Accepted Answer

.36/(1 - .36)= .36/.64 = 56.3%.

Question 10

A video game sells at Arnolds for $199.95. Arnolds marks the game up at 30% of the selling price. What was the cost of the video game to Arnolds?

Accepted Answer

Cost = 199.95 × (1 - .3)= $139.97

Question 11

Evelyn Smith, a customer of Bill Blank, will pay only $125 for a tea set. Assuming Bill works on a 40% markup on the selling price, what is the most Bill could pay the manufacturer for this tea set?

Accepted Answer

$125 × .60 = $75.

Question 12

Convert a 30% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.)

Accepted Answer

.3/(1 + .30)= 23.08%

Question 13

A toaster is marked up $10 and sells for $45.00. Find the cost and percent markup if the markup is based on cost. (Round to the nearest hundredth percent.)

Accepted Answer

Cost = $45 - $10 = $35; Markup = $10/$35 = 28.57%.

Question 14

Calculate the total cost, total sales, and selling price per unit.
 $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Total Qty } \
\text { Bought }
\end{array} & \begin{array} { c } 
\text { Unit } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Markup \% on } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Sales }
\end{array} & \begin{array} { c } 
\% \text { That Will } \
\text { Spoil }
\end{array} & \begin{array} { c } 
\text { Selling Price } \
\text { Per Unit }
\end{array} \
\hline \text { Eclairs } & 30 & \$ .90 & \text { A } & 45 \% & \text { B } & 30 \% & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the total cost, total sales, and...

Question 15

Louis's Hat Shop bought a hat for $95. Louis wants to markup the hat by 55% of the selling price. What should the selling price of the hat be?

Accepted Answer

$95/(1 - .55)= $211.11.

Question 16

A wooden duck with a regular selling price of $109.45 is marked down to $69.50. What is the percent of markdown based on the regular price? (Round to the nearest tenth percent.)

Accepted Answer

Markdown = 109.45 - 69.50 = $39.95; $39.95/$109.45 = 36.5%

Question 17

Calculate the total cost, total sales, and selling price per unit.
 $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Total } \
\text { Quantitty } \
\text { Bought }
\end{array} & \begin{array} { c } 
\text { Unit } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Markup \% on } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Sales }
\end{array} & \% \text { Spoilage } & \begin{array} { c } 
\text { Selling Price } \
\text { per Unit } \
\text { Cost }
\end{array} \
\hline \text { Brownies } & 50 & \$ .65 & \mathrm {~A} & 35 \% & \mathrm {~B} & 20 \% & \mathrm { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the total cost, total sales, and...

Question 18

28% markup on selling price
Actual cost $900
Selling price?

Accepted Answer

$900/.72. = $1,250

Question 19

Calculate the final selling price.
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Original } \
\text { SellingPrice }
\end{array} & \begin{array} { c } 
1 \text { st } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { 2nd } \
\text { Markdown }
\end{array} & \text { Markup } & \begin{array} { c } 
\text { Final } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { Final Selling } \
\text { Price }
\end{array} \
\hline \$ 7,000 & 15 \% & 10 \% & 8 \% & 8 \% & - - \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the final selling price.
 \[\begin{array} {...

Question 20

Calculate the final selling price.
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Original } \
\text { SellingPrice }
\end{array} & \begin{array} { c } 
1 \text { st } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { 2nd } \
\text { Markdown }
\end{array} & \text { Markup } & \begin{array} { c } 
\text { Final } \
\text { Markdown }
\end{array} & \begin{array} { c } 
\text { Final Selling } \
\text { Price }
\end{array} \
\hline \$ 4,000 & 10 \% & 15 \% & 6 \% & 8 \% & ? \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the final selling price.
 \[\begin{array} {...

Quiz 8: Markups and Markdowns: Perishables and Breakeven Analysis

Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)

Find the cost and markup of a stove if it sells for $400 and is marked up 100% of the cost.

Jorge Keegan sells lamps for $92.10 that cost him $62.00. What is Jorge's percent of markup based on the selling price? (Round to nearest hundredth percent.)

Al Shelf knows his goods are marked up 36% on cost. If a TV cost Al $280, what would the selling price be?

Blue Jeans Inc. sells jeans that cost $15.99 for a selling price of $42.95. What is the percent of markup based on cost? (Round to the nearest hundredth percent.)

Jane Corporation produces fudge bars. Total fixed cost is $55,500. Each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. What is the breakeven point for Jane Corporation?

Mary's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming Mary wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?

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

Convert a 36% markup on selling price to the equivalent percent markup on cost.

A video game sells at Arnolds for $199.95. Arnolds marks the game up at 30% of the selling price. What was the cost of the video game to Arnolds?

Evelyn Smith, a customer of Bill Blank, will pay only $125 for a tea set. Assuming Bill works on a 40% markup on the selling price, what is the most Bill could pay the manufacturer for this tea set?

Convert a 30% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.)

A toaster is marked up $10 and sells for $45.00. Find the cost and percent markup if the markup is based on cost. (Round to the nearest hundredth percent.)

Louis's Hat Shop bought a hat for $95. Louis wants to markup the hat by 55% of the selling price. What should the selling price of the hat be?

A wooden duck with a regular selling price of $109.45 is marked down to $69.50. What is the percent of markdown based on the regular price? (Round to the nearest tenth percent.)

28% markup on selling price Actual cost $900 Selling price?