Question 1

A skateboard costing $16.23 was marked up to realize gross profit of 50% of the selling price.
a) What was the selling price?
b) What was the gross profit as a percent of cost?

Accepted Answer

The answer of A skateboard costing $16.23 was marked up...

Question 2

A bed and bedding store sold a futon regularly priced for $330.00 for $240.00. The futon was originally purchased for $200.00 less 60%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the futon was sold.
b) Calculate the operating profit or loss at the sale price.

Accepted Answer

The answer of A bed and bedding store sold a...

Question 3

A retail store realizes a gross profit of $62.67 if it sells an article at a margin of 32% of the selling price.
a) What is the regular selling price?
b) What is the cost?
c) What is the rate of markup based on cost?
d) If overhead is 21% of cost, what is the break-even price?
e) If the article is sold at a markdown of 25%, what is the operating profit or loss?

Accepted Answer

The answer of A retail store realizes a gross profit...

Question 4

Sean's Hardware Supplies sells a snowblower for $750.99. The markup is 70% of cost.
a) How much does the store pay for this snowblower?
b) What is the rate of markup based on selling price?

Accepted Answer

The answer of Sean's Hardware Supplies sells a snowblower for...

Question 5

A retailer buys a computer for resale at $500.00 less 35%, 10%. The store marks the merchandise to cover expenses of 15% of the regular selling price and a net profit of 24% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 25%. What is the operating profit or loss?

Accepted Answer

The answer of A retailer buys a computer for resale...

Question 6

A natural gas oven cost a retailer $420.00 less 37%, 22%, 3.75%. It carries a regular selling price on its price tag at a markup of 65% of the regular selling price. During the end-of-season sale, the barbecue is marked down 42%.
a) What is the end-of-season sale price?
b) What rate of markup based on cost will be realized during the sale?

Accepted Answer

The answer of A natural gas oven cost a retailer...

Question 7

The Camping Store buys sleeping bags for $54.10 less 12% for buying more than 50 sleeping bags. The store operates on a margin of 51% of the sale price and advertises that all merchandise is sold at a discount of 25% of the regular selling price. What is the regular selling price of the sleeping bags?

Accepted Answer

The answer of The Camping Store buys sleeping bags for...

Question 8

Bargain City bought desks for $175.00 less 29%, 21%, 13%. The store's overhead is 65% of cost and normal profit is 27% of cost.
a) What is the regular selling price of the desks?
b) At what price can the desks be put on sale so that the store incurs an operating loss of no more than 30% of the overhead?
c) What is the maximum rate of markdown at which the desks can be offered for sale in part b)?

Accepted Answer

The answer of Bargain City bought desks for $175.00 less...

Question 9

Sheldan Services sells oil at a markup of 46% of the selling price. If Sheldan paid $1.99 per litre of oil,
a) what is the selling price per litre?
b) what is the rate of markup based on cost?

Accepted Answer

The answer of Sheldan Services sells oil at a markup...

Question 10

A retailer buys an appliance for resale at $2123.00 less 27%, 20%. The store marks the merchandise to cover expenses of 23% of the regular selling price and a net profit of 12.9% of the regular selling price. During a clearance sale, the appliance is sold at a markdown of 22%. What is the operating profit or loss?

Accepted Answer

The answer of A retailer buys an appliance for resale...

Question 11

A furniture store sold a bed regularly priced for $990.00 for $720.00. The bed was originally purchased for $600.00 less 40%. The store's overhead is 25% of the regular selling price.
a) Calculate the rate of markdown at which the bed was sold.
b) Calculate the operating profit or loss at the sale price.

Accepted Answer

The answer of A furniture store sold a bed regularly...

Question 12

Murray's Pro Shop purchased sets of golf clubs for $710.00 less 22%, 17%, and 19%. Expenses are 19% of the regular selling price and the required profit is 19% of the regular selling price. The store decided to change the regular selling price so that it could offer a 47% discount without affecting its margin. At the end of the season, the unsold sets were advertised at a discount of 60%. What operating profit or loss was realized on the sets sold at the end of the season?

Accepted Answer

The answer of Murray's Pro Shop purchased sets of golf...

Question 13

Dave and Lance buy pants for $32.75 less 12.75%, 18%. The pants are priced at a regular selling price to cover expenses of 35% of selling price and a profit of 32% of selling price. For a special weekend sale, shirts were marked down 15%.
a) What was the operating profit or loss on the pants sold during the weekend sale?
b) What rate of markup was realized based on the sale price?

Accepted Answer

The answer of Dave and Lance buy pants for $32.75...

Question 14

A retailer paid $59.23 for a set of utensils. Overhead is 14% of the regular selling price and profit is 11% of the regular selling price. During a clearance sale, the set was sold at a markdown of 17%. What was the operating profit or loss on the sale?

Accepted Answer

The answer of A retailer paid $59.23 for a set...

Question 15

An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The dealer's overhead is 17% of the regular selling price and the answering machine was cleared out for $175.45.
a) What is the regular markup based on selling price?
b) What was the rate of markdown at which the answering machine was sold?
c) What was the operating profit or loss?
d) What rate of markup based on cost was realized?

Accepted Answer

The answer of An answering machine cost a dealer $220.00...

Question 16

Chris's Photographic Supplies sells a Minolta camera for $551.83. The markup is 72% of cost.
a) How much does the store pay for this camera?
b) What is the rate of markup based on selling price?

Accepted Answer

The answer of Chris's Photographic Supplies sells a Minolta camera...

Question 17

The regular selling price of merchandise sold in a store includes a margin of 62% based on selling price. During a sale, an item which cost the store $231.25 was marked down 47%. For how much was the item sold?

Accepted Answer

The answer of The regular selling price of merchandise sold...

Question 18

An item that cost the dealer $2331.00 less 14%, 12.25% carries a price tag at a markup of 70% based on cost. For quick sale the item was reduced 30%. What was the sale price?

Accepted Answer

The answer of An item that cost the dealer $2331.00...

Question 19

A value oriented store buys video recorders for $230.75 less 42%, 11.5%. Expenses are 65% of normal selling price and the required profit is 13% of normal selling price. All merchandise is marked so that the store can advertise a discount of 55%, while still maintaining its regular margin. During the annual clearance sale, the price of the unsold item is marked down 70%. What operating profit or loss is made by the store on items sold during the sale?

Accepted Answer

The answer of A value oriented store buys video recorders...

Question 20

A bike shop reduces the price of a bike for quick sale from $455.00 to $395.00. Compute the markdown correct to the

Accepted Answer

The answer of A bike shop reduces the price of...

Quiz 5: Trade Discount, Cash Discount, Markup, and Markdown

A skateboard costing $16.23 was marked up to realize gross profit of 50% of the selling price. a) What was the selling price? b) What was the gross profit as a percent of cost?

Sean's Hardware Supplies sells a snowblower for $750.99. The markup is 70% of cost. a) How much does the store pay for this snowblower? b) What is the rate of markup based on selling price?

Sheldan Services sells oil at a markup of 46% of the selling price. If Sheldan paid $1.99 per litre of oil, a) what is the selling price per litre? b) what is the rate of markup based on cost?

A retailer paid $59.23 for a set of utensils. Overhead is 14% of the regular selling price and profit is 11% of the regular selling price. During a clearance sale, the set was sold at a markdown of 17%. What was the operating profit or loss on the sale?

Chris's Photographic Supplies sells a Minolta camera for $551.83. The markup is 72% of cost. a) How much does the store pay for this camera? b) What is the rate of markup based on selling price?

The regular selling price of merchandise sold in a store includes a margin of 62% based on selling price. During a sale, an item which cost the store $231.25 was marked down 47%. For how much was the item sold?

An item that cost the dealer $2331.00 less 14%, 12.25% carries a price tag at a markup of 70% based on cost. For quick sale the item was reduced 30%. What was the sale price?

A bike shop reduces the price of a bike for quick sale from $455.00 to $395.00. Compute the markdown correct to the