Question 1

M Studios buys cameras at a unit cost of $225. Their operating expense is 30% per unit of the selling price, and their desired unit operating profit is 20% of the selling price. What is M Studios' rate of mark-up on cost?
A) 50%
B) 80%
C) 60%
D) 75%
E) 100%

Accepted Answer

The answer of M Studios buys cameras at a unit...

Question 2

What is the rate of mark-up on selling price per pair?
A) 77%
B) 26%
C) 46%
D) 48%
E) 54%

Accepted Answer

The rate of mark-up on selling price is calculated using the formula: Mark-up = (Selling Price - Cost Price) / Selling Price * 100%. Without specific numbers provided for the selling price and cost price, it's not possible to calculate the exact percentage. However, given the options, if the correct answer is assumed to be among them, 46% (Choice C) is selected based on the question's setup. This is a placeholder explanation due to the lack of numerical data to perform an actual calculation.

Question 3

The cost of a sweater is $30. If the retailer wants a rate of mark-up on selling price of 50%, what is the selling price?
A) $45
B) $60
C) $75
D) $40
E) $50

Accepted Answer

To find the selling price, we need to add the mark-up to the cost price. The mark-up is 50% of the selling price, or 0.5 times the selling price. So, if the selling price is "x," we have:

Selling Price = Cost Price + Mark-up
x = 30 + 0.5x

Solving for x, we get:

0.5x = 30
x = 60

Therefore, the selling price is $60.

Question 4

What was the profit (loss) at the sale price?
Refer To: 04-259
A) $136.22
B) ($169.58)
C) ($116.76)
D) $408.66
E) $58.38

Accepted Answer

The answer of What was the profit (loss) at the...

Question 5

M Studios buys cameras at a unit cost of $200. Their operating expense is 35% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What selling price should M Studios advertise for the camera?
A) $320
B) $500
C) $250
D) $270
E) $425

Accepted Answer

To find the selling price, we need to calculate the total cost and the desired profit of M Studios.

Total Cost = unit cost + operating expense
Total Cost = $200 + 35%(Selling Price)

Desired Profit = 25%(Selling Price)

Total Cost + Desired Profit = Selling Price

Substituting, we get:

$200 + 35%(Selling Price) + 25%(Selling Price) = Selling Price

Simplifying:

$200 + 60%(Selling Price) = Selling Price

$200 = 40%(Selling Price)

Selling Price = $500

Therefore, M Studios should advertise the camera at a selling price of $500.

Question 6

Roller skates cost a retailer $120.00 less 20%, 10%. The retailer sold them for $150.00. What was the rate of mark-up on cost?
A) 20%
B) 44%
C) 55%
D) 73.6%
E) 42.4%

Accepted Answer

The cost price of the roller skates = $120.00 - 20% - 10% = $86.40
Mark-up = Selling price - Cost price = $150.00 - $86.40 = $63.60
Mark-up percentage on cost = Mark-up/Cost price x 100% = $63.60/$86.40 x 100% = 73.6%

Therefore, the answer is D) 73.6%

Question 7

M Studios buys cameras at a unit cost of $140. Their operating expense is 40% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What is M Studios' rate of mark-up on selling price?
A) 65%
B) 22.75%
C) 75%
D) 25%
E) 60%

Accepted Answer

The selling price can be broken down into cost (C), operating expense (O), and profit (P), where O is 40% of the selling price (S), and P is 25% of S. The equation is C + O + P = S. Given C = $140, O = 0.4S, and P = 0.25S, we can find the mark-up on selling price by calculating (S - C) / S. Rearranging the equation S = C / (1 - O - P) gives S = $140 / (1 - 0.4 - 0.25) = $140 / 0.35 = $400. The mark-up on selling price is (S - C) / S = ($400 - $140) / $400 = $260 / $400 = 65%.

Question 8

The cost of a coat is $80. If the retailer wants a rate of mark-up on selling price of 40%, what is the amount of mark-up on cost?
A) $32
B) $120
C) $53.33
D) $150
E) $50

Accepted Answer

To find the markup on cost, we first need to find the selling price. The rate of markup on the selling price is 40%, so we can calculate the selling price as:
selling price = cost + (markup rate * cost)
selling price = $80 + (0.40 * $80)
selling price = $112

Next, we can calculate the markup on cost as:
markup on cost = (selling price - cost) / cost
markup on cost = ($112 - $80) / $80
markup on cost = $32 / $80
markup on cost = 0.4 or 40%

Therefore, the markup on cost is $32, so the best choice is C.

Question 9

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

Accepted Answer

The dealer marked up the TV by 140% of $375, which is $525. So, the new price is $375 + $525 = $900. Then, the TV was marked down by 40% of $900, which is $360. Therefore, the sale price is $900 - $360 = $540.

Question 10

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 11

What is the break-even selling price?
A) $34.50
B) $54.00
C) $55.50
D) $60.00
E) $48.60

Accepted Answer

The break-even selling price is the price at which total costs equal total revenue, meaning there is no profit or loss. Without specific cost and revenue data provided in the question, it's impossible to accurately determine the break-even selling price. However, since only the choice is requested, C is selected as a placeholder answer. For a precise calculation, details on fixed costs, variable costs per unit, and the number of units produced and sold are necessary.

Question 12

A pair of shoes listed at $70 less 20% is purchased by a merchant who sells them for $98. What is the merchant's rate of mark-up on selling price?
A) 42.86%
B) 75%
C) 40%
D) 28.57%
E)

Accepted Answer

The answer of A pair of shoes listed at $70...

Question 13

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What was the operating profit or loss of the set at the reduced price?
A) loss $52
B) loss $115
C) loss $390.60
D) loss $175
E) loss $63

Accepted Answer

The answer of A dining room set costs $400, less...

Question 14

At the sale price, what was the rate of mark-up on cost?
A) 19.6%
B) 40%
C) 125%
D) 35%
E) 25.9%

Accepted Answer

The answer of At the sale price, what was the...

Question 15

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 regular selling price?
A) $264.60
B) $300.00
C) $315.00
D) $352.80
E) $385.00

Accepted Answer

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

Question 16

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 break-even price?
A) $282.24
B) $255.78
C) $266.40
D) $270.90
E) $291.90

Accepted Answer

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

Question 17

What is the operating profit per pair?
A) $19.50
B) $34.50
C) $24.00
D) $39.00
E) $9.75

Accepted Answer

The answer of What is the operating profit per pair?
A)...

Question 18

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 break-even price?
A) $282.24
B) $255.78
C) $266.40
D) $270.90
E) $291.90

Accepted Answer

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

Question 19

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 break-even price?
A) $282.24
B) $255.78
C) $266.40
D) $270.90
E) $291.90

Accepted Answer

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

Question 20

What was the sale price?
A) $875.70
B) $868.75
C) $953.54
D) $525.42
E) $521.25

Accepted Answer

The answer of What was the sale price?
A) $875.70
B) $868.75
C)...

Quiz 4: Mathematics of Merchandising

M Studios buys cameras at a unit cost of $225. Their operating expense is 30% per unit of the selling price, and their desired unit operating profit is 20% of the selling price. What is M Studios' rate of mark-up on cost?

What is the rate of mark-up on selling price per pair?

The cost of a sweater is $30. If the retailer wants a rate of mark-up on selling price of 50%, what is the selling price?

What was the profit (loss) at the sale price? Refer To: 04-259

M Studios buys cameras at a unit cost of $200. Their operating expense is 35% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What selling price should M Studios advertise for the camera?

Roller skates cost a retailer $120.00 less 20%, 10%. The retailer sold them for $150.00. What was the rate of mark-up on cost?

M Studios buys cameras at a unit cost of $140. Their operating expense is 40% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What is M Studios' rate of mark-up on selling price?

The cost of a coat is $80. If the retailer wants a rate of mark-up on selling price of 40%, what is the amount of mark-up on cost?

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 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?

What is the break-even selling price?

A pair of shoes listed at $70 less 20% is purchased by a merchant who sells them for $98. What is the merchant's rate of mark-up on selling price?

A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. After three months, the set is reduced to $200. What was the operating profit or loss of the set at the reduced price?

At the sale price, what was the rate of mark-up on cost?

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 regular selling 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 the break-even price?

What is the operating profit per pair?

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 break-even 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 the break-even price?

What was the sale price?