Question 1

The markup on greeting cards in a drug store is 65% of the selling price. For a card priced at $4.95, determine:
a. It's cost
b. The rate of markup on cost

Accepted Answer

The answer of The markup on greeting cards in a...

Question 2

The markup on desserts in a restaurant is 70% of the menu price. The restaurant is adding key lime pie to its dessert list. The cost to the restaurant works out to $1.25 per slice. Determine:
The menu price of the pie b. The rate of markup on cost

Accepted Answer

The answer of The markup on desserts in a restaurant...

Question 3

Bath 'n Bedroom sets its prices to allow for overhead expenses that average 50% of unit cost and a normal profit of 30% of cost. For towel sets priced at $39.89, determine:
a. The wholesale cost
b. The rate of markup on selling price

Accepted Answer

The answer of Bath 'n Bedroom sets its prices to...

Question 4

The price of tools is set by Ace Hardware to cover operating expenses at 40% of cost, and to generate an operating profit of 25% of cost. What is the rate of markup on selling price for a rotary saw selling for $129?

Accepted Answer

The answer of The price of tools is set by...

Question 5

Maritime Cellular purchases a BlackBerry smart-phone model for $395 less trade discounts of 20% and 10%. Maritime's overhead expenses are $59 per unit.
a) What should be the selling price to generate a profit of $40 per phone?
b) What is the rate of markup on cost?
c) What is the rate of markup on selling price?
d) What would be the break-even selling price for the Annual Clear-Out Sale?

Accepted Answer

The answer of Maritime Cellular purchases a BlackBerry smart-phone model...

Question 6

The rate of markup on the cost of a toaster selling at $54.95 is 45%.
a) What was the cost of the toaster to the retailer?
b) What is the rate of markup on selling price?

Accepted Answer

The answer of The rate of markup on the cost...

Question 7

Beaver Building Supply obtains 4- by 8-ft sheets of half-inch plywood from Macmillan Forest Products at $54 per sheet less 30% and 5%. The price is to be set to cover Beaver's overhead of 20% of the selling price and to provide an operating profit of 12% of the selling price. What should be the retail price per sheet?

Accepted Answer

The answer of Beaver Building Supply obtains 4- by 8-ft...

Question 8

An item costing $185 was marked up by 50% of cost and subsequently marked down by $60 during a sale. Determine:
a. The regular selling price
b. The rate of markdown

Accepted Answer

The answer of An item costing $185 was marked up...

Question 9

An item was marked up from $58.50 to $95.00, then later marked down by 30% during a Spring Sale. Determine:
a. The original rate of markup on selling price
b. The price during the Spring Sale

Accepted Answer

The answer of An item was marked up from $58.50...

Question 10

An item was marked up from $24.99 to $49.98 before it was marked down to $24.99 and sold at cost. Determine:
a. The rate of markup on cost
b. The rate of markdown

Accepted Answer

The answer of An item was marked up from $24.99...

Question 11

The manager of a home and garden store buys patio furniture sets for $580 each and marks them up by 50% of cost. In late August, he clears out remaining inventory at a 30% markdown. Determine:
a. The clearance price
b. The rate of markdown (from the regular price) to sell the floor display set at cost

Accepted Answer

The answer of The manager of a home and garden...

Question 12

Calculate the reduced price, if an item costing $19.25 is marked up by 35% of the selling price and then marked down by 25%.

Accepted Answer

The answer of Calculate the reduced price, if an item...

Question 13

Garden Centre purchases lawnmowers from a wholesaler for $249 and marks them up by 25% of selling price. At the end of the summer, a scratched floor-display mower's price is reduced to 10% above cost. What percentage price reduction should the price tag show?

Accepted Answer

The answer of Garden Centre purchases lawnmowers from a wholesaler...

Question 14

Digital Devices plans to stop carrying the Casio FC-100 calculator. It normally marks up the calculator from the $71.50 wholesale cost to the regular selling price of $99.95.
a) What is the normal rate of markup on selling price?
b) What rate of markdown can be advertised if Digital Devices wishes to clear out the stock at the wholesale cost?

Accepted Answer

The answer of Digital Devices plans to stop carrying the...

Question 15

Poles Apart obtains Nitro T1 snowboards at a cost of $345 and marks them up by 35% of the selling price. For its Annual Spring Sale, Poles Apart marks down prices by 25%. What is the sale price of the Nitro T1 snowboards?

Accepted Answer

The answer of Poles Apart obtains Nitro T1 snowboards at...

Question 16

The sign on a rack of sport coats reads: "All prices already marked down 30%!" What is the regular selling price of a coat marked at:
a) $100? 
b) $196.49?

Accepted Answer

The answer of The sign on a rack of sport...

Question 17

An item that cost $37.25 was marked up by 60% of cost. Later, the retail price was reduced to $41.72. If unit overhead expenses were 20% of cost, what was the unit operating profit at the reduced price?

Accepted Answer

The answer of An item that cost $37.25 was marked...

Question 18

A retailer marked up an item from its $7.92 cost to the regular selling price of $19.80. During the store's Anniversary Sale, the item was offered at 20% off. On a sale at this price, what was the (reduced) operating profit if unit overhead expenses were 70% of cost?

Accepted Answer

The answer of A retailer marked up an item from...

Question 19

Elite Sports sells Kevlar-graphite shaft hockey sticks for $147 each. Elite's wholesale cost is $98. For the Spring Clearance Sale, the prices are marked down by 20%. If overhead expenses are 15% of the regular selling price, what is the unit operating profit at the sale price?

Accepted Answer

The answer of Elite Sports sells Kevlar-graphite shaft hockey sticks...

Question 20

Morgan Photography's markup on its antique picture frames is 35% of selling price. Its cost on the medium-size antique frame is $115.70. For portrait photos shot by Morgan's, this frame's price is reduced to $133.50. What is Morgan's operating profit or loss at this price if overhead expenses are 20% of the regular selling price?

Accepted Answer

The answer of Morgan Photography's markup on its antique picture...

Quiz 4: Mathematics of Merchandising

The markup on greeting cards in a drug store is 65% of the selling price. For a card priced at $4.95, determine: a. It's cost b. The rate of markup on cost

The markup on desserts in a restaurant is 70% of the menu price. The restaurant is adding key lime pie to its dessert list. The cost to the restaurant works out to $1.25 per slice. Determine: The menu price of the pie b. The rate of markup on cost

Bath 'n Bedroom sets its prices to allow for overhead expenses that average 50% of unit cost and a normal profit of 30% of cost. For towel sets priced at $39.89, determine: a. The wholesale cost b. The rate of markup on selling price

The price of tools is set by Ace Hardware to cover operating expenses at 40% of cost, and to generate an operating profit of 25% of cost. What is the rate of markup on selling price for a rotary saw selling for $129?

The rate of markup on the cost of a toaster selling at $54.95 is 45%. a) What was the cost of the toaster to the retailer? b) What is the rate of markup on selling price?

An item costing $185 was marked up by 50% of cost and subsequently marked down by $60 during a sale. Determine: a. The regular selling price b. The rate of markdown

An item was marked up from $58.50 to $95.00, then later marked down by 30% during a Spring Sale. Determine: a. The original rate of markup on selling price b. The price during the Spring Sale

An item was marked up from $24.99 to $49.98 before it was marked down to $24.99 and sold at cost. Determine: a. The rate of markup on cost b. The rate of markdown