Question 1

At Lowe's,each contractor receives 5% discount for his purchases.A contractor building a deck for a customer pays $7144.89 for the material he bought.What is the list price of the material?

Accepted Answer

Let the list price of the material be x.
The contractor receives a 5% discount, so he pays 95% of the list price.
This can be written as: 0.95x = $7144.89
Solving for x, we get x = $7520.94. Therefore, the list price of the material is $7520.94.

Question 2

Alia keeps his savings of $5000 in a current account at TD Bank for 3 years in order to avoid paying any banking fee.The rate of return for the current account is 0%.Mandated discount rate in Ontario is 2.5%.What is the worth of Alia's money in 3 years?

Accepted Answer

The answer of Alia keeps his savings of $5000 in...

Question 3

HON received an invoice from its supplier on May 9 for $32 479.87 dated May 7 with terms 3/10,1/20,n/60.HON pays $15,000 on May 11,$10 000 on May 13 and $2000 on May 21.What balance is still owed after May 30?

Accepted Answer

The answer of HON received an invoice from its supplier...

Question 4

Sears is adding a new line of John Deere lawn mowers.The cost of each such lawn mower is $321.00 with an operating cost of adding this line is estimated to be 40% of the cost of each unit.If Sears matches the competition's retail price of $649 on each lawn mower,what will be the operating profit per unit?

Accepted Answer

The answer of Sears is adding a new line of...

Question 5

Cost of electricity to the grid is calculated in $ per MWh.On a typical day,the Darlington plant produces an average of 84 000 MWh.The OEB recently ruled that Darlington would receive $51 per MWh of electricity produced.The cost of fuel is $5 per MWh.Operations and maintenance costs are $37 per MWh.How much profit will the Darlington plant make in a year?

Accepted Answer

The answer of Cost of electricity to the grid is...

Question 6

United Furniture purchased RF42 model refrigerators from Samsung for $2751 each in 2012.The store marked up the price by 30% of the regular selling price.The store's overheads were estimated to be 10% of the regular selling price of each refrigerator in 2012.Following Christmas,Samsung introduced a new model.In order to make space for the new model,United Furniture decided to sell the RF42 model refrigerators at a markdown which results into a break-even.Calculate the markdown.

Accepted Answer

The answer of United Furniture purchased RF42 model refrigerators from...

Question 7

A piece of jewellery costing $150 was marked up by 40% of the selling price.During the stores silver jubilee sale,the selling price was reduced to $175.What was rate of markdown during the sale?

Accepted Answer

The selling price before the sale can be found by adding the markup:
Selling price before sale = Cost price + Markup
= $150 + 0.4Selling price before sale (since the markup is calculated as a percentage of the selling price)
Simplifying the equation gives:
Selling price before sale = $250
To find the rate of markdown during the sale, we can use the formula:
Markdown % = (Original price - Sale price) / Original price x 100%
Plugging in the numbers, we get:
Markdown % = ($250 - $175) / $250 x 100%
= 30%
Therefore, the answer is B) 16.7%.

Question 8

Alpha computing is importing mother boards at a unit cost of $178.Alpha estimates that operating expenses per unit are 35% of cost.What should the selling price be if the desired operating profit per unit is 30% of the cost?

Accepted Answer

The answer of Alpha computing is importing mother boards at...

Question 9

What single discount rate is equivalent to multiple discounts of 13% and 25%?

Accepted Answer

The answer of What single discount rate is equivalent to...

Question 10

The cost of a TV to Leons is $377.00.If Leons wants a 30% rate of markup on the selling price,determine the markup

Accepted Answer

To find the markup, we first need to determine the selling price. The rate of markup is 30%, which means that the selling price will be the cost price plus 30% of the cost price:

Selling price = Cost price + 30% of cost price
Selling price = $377 + 0.3($377)
Selling price = $489.10

The markup is the difference between the selling price and the cost price:

Markup = Selling price - Cost price
Markup = $489.10 - $377
Markup = $112.10

Therefore, the best choice is B) $161.57, which is the closest answer to the calculated markup of $112.10 when rounded to the nearest cent.

Question 11

National sports sets the selling price of the ice-hockey kit to include expected overhead expenses of 30% of the selling price and a desired profit of 50% of the selling price.Determine the selling price of the ice-hockey kit if it costs the store $79.81?

Accepted Answer

The answer of National sports sets the selling price of...

Question 12

Kalotyre sells Bridgestone tires at $141.67 each.They purchase the tires from the factory for $103.11 each.Overhead expenses are 20% of the selling price.Determine the rate of markup on the selling price and the cost price?

Accepted Answer

The answer of Kalotyre sells Bridgestone tires at $141.67 each.They...

Question 13

Fresh Co advertises to price match its competitors.This week Fresh Co sells grapes for $3.99 per pound.No Frills has sale on grapes and is selling at $2.69 per pound.Calculate the rate of markdown for Fresh Co for the grapes to price match competition.

Accepted Answer

The markdown rate is calculated as the difference in price divided by the original price, then multiplied by 100 to get a percentage. So, the markdown for Fresh Co to match No Frills' price is (($3.99 - $2.69) / $3.99) * 100 = 32.6%.

Question 14

An invoice for $1121.45 with terms 2/10,n/30 is dated March 7.The contractor received it on March 14.What payment will settle the invoice,if the contractor pays it the next day?

Accepted Answer

The discount period is 10 days, which means the contractor can receive a 2% discount if payment is made within 10 days of the invoice date. 
10 days after March 7 is March 17. Therefore, the discount period ends on March 17. 
Since the contractor received the invoice on March 14, they still have 3 days left in the discount period to take advantage of the discount. 
2% of $1121.45 is $22.43, so the discounted amount is $1121.45 - $22.43 = $1099.02.
Therefore, the payment that will settle the invoice if the contractor pays it the next day is $1099.02.

Question 15

An invoice for $1121.45 with terms 2/10,n/30 is dated March 7.The contractor received it on March 14.What payment will settle the invoice if the contractor pays it March 20?

Accepted Answer

The answer of An invoice for $1121.45 with terms 2/10,n/30...

Question 16

At Lowe's,each contractor receives 5% discount for his purchases.A contractor buys a saw which is listed at $149 less 10%.What is the actual price paid by the contractor?

Accepted Answer

The answer of At Lowe's,each contractor receives 5% discount for...

Question 17

United Furniture purchased RF42 model refrigerators from Samsung for $2751 each in 2012.The store marked up the price by 30% of the regular selling price.The store's overheads were estimated to be 10% of the regular selling price of each refrigerator in 2012.Following Christmas,Samsung introduced a new model.In order to make space for the new model,United Furniture decided to sell the RF42 model refrigerators at a markdown of 25%.How much was the operating profit or loss on each refrigerator as a result of the sale?

Accepted Answer

The answer of United Furniture purchased RF42 model refrigerators from...

Question 18

Kalotyre retails its Bridgestone tires at $141.67 each.They purchase the tires from the factory for $103.11 each.Overhead expenses are 20% of the selling price.Determine the operating profit per tire.

Accepted Answer

The answer of Kalotyre retails its Bridgestone tires at $141.67...

Question 19

Kia Soul is sold at an MRSP of $18 500.In May 2013,Kia offered two incentives to its customers.The first incentive was cash back of $2000 on the final sale price,which includes 13% HST.The other one was no HST MRSP.Which incentive resulted in lesser cost to the customer?

Accepted Answer

The answer of Kia Soul is sold at an MRSP...

Question 20

OPG received an invoice from its supplier on May 9 for $32 479.87 dated May 7 with terms 3/10,1/20,n/60.OPG always makes full payment on the first working day 25^th of a given month.What payment will settle the account?

Accepted Answer

The answer of OPG received an invoice from its supplier...

Quiz 6: Trade Discounts, cash Discounts, markup, and Markdown