Question 1

On October 26, Sandor received an invoice dated October 24. The amount billed was $815.49 with terms 2/20, n/45, ROG. The goods were received on November 4. On November 21, Sandor paid $500 on the account. Calculate the balance after the payment.

Accepted Answer

The answer of On October 26, Sandor received an invoice...

Question 2

On October 26, Sandor received an invoice dated October 24. The amount billed was $815.49 with terms 2/20, n/45, ROG. The goods were received on November 4. On November 21, Sandor paid $500 on the account. Calculate the balance after the payment.

Accepted Answer

The answer of On October 26, Sandor received an invoice...

Question 3

On April 1, Hakim received an invoice for $4535.50 dated March 28. The terms of payment were 3/10, 1/ 20, n/30, EOM. Hakim made three payments of $1000 each on April 5, April 10, April 15, and April 20. What was the balance after the fourth payment?

Accepted Answer

The answer of On April 1, Hakim received an invoice...

Question 4

An invoice for $2678.50 dated April 15 has terms 1½ /15, EOM 
a. When does the discount period end?
b. When does the credit period end?
c. What payment on April 30 will reduce the outstanding balance by $800?
d. If an additional payment of $800 is made on May 5, what will be the new balance?
e. What further payment on May 10 will reduce the outstanding balance to $800?

Accepted Answer

The answer of An invoice for $2678.50 dated April 15...

Question 5

An invoice for $13,600 dated May 18 has terms 2/10, ROG 
a. When does the discount period end?
b. When does the credit period end?
c. What payment on May 30 will reduce the outstanding balance by $5000?
d. Instead of the payment in Part c), $5000 is paid on May 30. What will be the balance owed?
e. Instead of the payment in Part c) and d), what payment on June 5 will reduce the outstanding balance to $5000?

Accepted Answer

The answer of An invoice for $13,600 dated May 18...

Question 6

Burlingame Carpets received a cheque for $8000 on December 10 from Sorenson Flooring as a partial payment of Burlingame's invoice. The invoice, dated November 20, was for $14,772 with terms 2/10, 1/20, n45, EOM.
a. How much should Burlingame credit Sorenson's account?
b. What is the balance still owed?

Accepted Answer

The answer of Burlingame Carpets received a cheque for $8000...

Question 7

Lakeside Marine received an invoice from Osborne Boats dated March 26 with terms 1½ /15, n/45, ROG for four 19-foot Barracuda boats at $23,500 each less 20%, 5%. The boats arrived on April 27. Lakeside made a payment of $60,000 on the account on May10. How much does Lakeside still owe?

Accepted Answer

The answer of Lakeside Marine received an invoice from Osborne...

Question 8

McFee Furniture received an invoice dated September 14 from Pallisade Manufacturing March 26 with terms 2½/10, EOM for the following items: four Prestige bedroom suites at $3900 each less 20%, 7%, and six Oak Traditional dining room suites at $4880 each less 25%, 5%. 0 each less 20%, 5%. What amount paid on October 10 will cut the amount owed in half?

Accepted Answer

The answer of McFee Furniture received an invoice dated September...

Question 9

An invoice for $8000 dated September 1 with terms 2/10, 1½ /20, n/30 is received in the mail on September 3. The company sent a cheque on September 12 for $2500. How much is credited to their account?
A) $2462.50
B) $2500
C) $2551.02
D) $2538.07
E) $2450

Accepted Answer

The answer of An invoice for $8000 dated September 1...

Question 10

An invoice for $75,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $50,000. How much is credited to their account?
A) $49,000.00
B) $48,500.00
C) $50,000.00
D) $51,020.41
E) $51,546.39

Accepted Answer

The answer of An invoice for $75,000 dated March 15...

Question 11

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the sale price?
A) $158.76
B) $180.00
C) $252.00
D) $141.12
E) $211.68

Accepted Answer

The answer of A product costing $350, less 30%, 20%,...

Question 12

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is rate of markup on cost?
A) 50%
B) 75%
C) 100%
D) 30%
E) 20%

Accepted Answer

The product's final cost after discounts is calculated by applying each discount successively: $350 * (1 - 0.30) * (1 - 0.20) * (1 - 0.10) = $350 * 0.7 * 0.8 * 0.9 = $176.40. To find the selling price (SP) before the sale, we set up the equation considering overhead (30% of SP) and profit (20% of SP) are based on the selling price: $176.40 = SP * (1 - 0.30 - 0.20). Solving for SP gives $176.40 = SP * 0.5, so SP = $352.80 before the sale. The markup on cost before the sale is then calculated as (SP - Cost) / Cost = ($352.80 - $176.40) / $176.40 = 1 or 100%.

Question 13

A 12½ % discount allowed on an article amounted to $25.50. What was the list price?
A) $204.00
B) $229.50
C) $3.19
D) $29.14
E) $178.50

Accepted Answer

The discount represents 12.5% of the list price, so $25.50 is 12.5% of the list price. To find the list price, divide $25.50 by 12.5% (or 0.125 in decimal form), which gives $204.00.

Question 14

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?
A) $192,000.00
B) $877,363.20
C) $191,557.63
D) $8773.63
E) $201,216.00

Accepted Answer

The net proceeds are the amount the vendor receives after the real estate commission is deducted. To find the selling price, divide the net proceeds by (1 - commission rate). Here, $182,784.00 / (1 - 0.048) = $192,000.00.

Question 15

After discounts of 20% and 10%, an item sold for $115.50. What was the amount of the discount?
A) $32.34
B) $385.00
C) $83.16
D) $80.85
E) $44.92

Accepted Answer

The original price is calculated by reversing the discounts: $115.50 / 0.9 / 0.8 = $160.42. The discount amount is $160.42 - $115.50 = $44.92.

Question 16

The rate of markup on selling price is 20% for an item that cost the retailer $84. What is the selling price?
A) $67.20
B) $16.80
C) $58.00
D) $105.00
E) $26.00

Accepted Answer

The markup on selling price formula is: Selling Price = Cost / (1 - Rate of Markup). Here, the cost is $84 and the rate of markup is 20% or 0.20. So, Selling Price = $84 / (1 - 0.20) = $84 / 0.80 = $105.

Question 17

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of markup on cost?
A) 57.33%
B) 42.67%
C) 174.42%
D) 68.50%
E) 74.42%

Accepted Answer

The rate of markup on cost is calculated as ((Selling Price - Cost Price) / Cost Price) * 100. Here, it is (($75.00 - $43.00) / $43.00) * 100 = 74.42%.

Question 18

A retailer buys T-shirts for $12.50. They are marked up to cover overhead of 40% of cost and a profit of 10% of cost. What is the rate of markdown if the T-shirts are sold at the break-even price?
A) 
B) 50.0%
C) 
D) 23.3%
E)

Accepted Answer

The answer of A retailer buys T-shirts for $12.50. They...

Question 19

A television set which cost a dealer $375 was marked up 140%. This item was then marked down 40% for quick sale. What was the sale price?
A) $900.00
B) $210.00
C) $360.00
D) $525.00
E) $540.00
An employer will cut his current workforce of 38,000 as follows: 8% now, 6% in one year, and 4% two years from now.

Accepted Answer

First, calculate the marked-up price: $375 + (140% of $375) = $375 + $525 = $900. Then, calculate the sale price after a 40% markdown: 40% of $900 = $360, so $900 - $360 = $540.

Question 20

How many employees will the employer have after all cuts?
A) 31,548
B) 29,280
C) 31,160
D) 34,960
E) 6840

Accepted Answer

The employer will have 31,548 employees after all cuts. This is because the employer currently has 34,960 employees, and 10% of 34,960 is 3,496. 34,960 - 3,496 = 31,548.

Quiz 4: Mathematics of Merchandising

On October 26, Sandor received an invoice dated October 24. The amount billed was $815.49 with terms 2/20, n/45, ROG. The goods were received on November 4. On November 21, Sandor paid $500 on the account. Calculate the balance after the payment.

On October 26, Sandor received an invoice dated October 24. The amount billed was $815.49 with terms 2/20, n/45, ROG. The goods were received on November 4. On November 21, Sandor paid $500 on the account. Calculate the balance after the payment.

On April 1, Hakim received an invoice for $4535.50 dated March 28. The terms of payment were 3/10, 1/ 20, n/30, EOM. Hakim made three payments of $1000 each on April 5, April 10, April 15, and April 20. What was the balance after the fourth payment?

Lakeside Marine received an invoice from Osborne Boats dated March 26 with terms 1½ /15, n/45, ROG for four 19-foot Barracuda boats at $23,500 each less 20%, 5%. The boats arrived on April 27. Lakeside made a payment of $60,000 on the account on May10. How much does Lakeside still owe?

An invoice for $8000 dated September 1 with terms 2/10, 1½ /20, n/30 is received in the mail on September 3. The company sent a cheque on September 12 for $2500. How much is credited to their account?

An invoice for $75,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. The company sent a cheque on March 26 for $50,000. How much is credited to their account?

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is the sale price?

A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price and profit of 20% of the selling price. During a sale, the product is marked down by 40%. What is rate of markup on cost?

A 12½ % discount allowed on an article amounted to $25.50. What was the list price?

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?

After discounts of 20% and 10%, an item sold for $115.50. What was the amount of the discount?

The rate of markup on selling price is 20% for an item that cost the retailer $84. What is the selling price?

Acme Shoes marked up a pair of shoes from the $43.00 cost to $75.00. What is the rate of markup on cost?

A retailer buys T-shirts for $12.50. They are marked up to cover overhead of 40% of cost and a profit of 10% of cost. What is the rate of markdown if the T-shirts are sold at the break-even price?

A television set which cost a dealer $375 was marked up 140%. This item was then marked down 40% for quick sale. What was the sale price?

How many employees will the employer have after all cuts?