Question 1

In addition to the basic trade discount of 20%, an outboard motor manufacturer gives a boat dealer an additional discount of 12.5% for providing follow-up warranty service, and a 5% discount for cooperative advertising and boat-show promotions.
a) After the basic trade discount, what further price reduction (in dollars) does the 12.5% discount represent on a $1,000 list price motor?
b) After the first two discounts, what price reduction does the 5% discount give on the $1,000 motor?

Accepted Answer

The answer of In addition to the basic trade discount...

Question 2

What total amount must be paid on May 4 to settle invoices dated April 20 for $650, April 24 for $790, and April 30 for $465, all with terms 1½/10, n/30?

Accepted Answer

The answer of What total amount must be paid on...

Question 3

On May 25, Morris Hardware received an invoice from Precision Tools Inc. for $5,076.64. The invoice was dated May 22 and offered terms of 2/10, 1/20, n/30. What payment will settle the invoice on:
a) June 1?
b) June 2?
c) June 5?

Accepted Answer

The answer of On May 25, Morris Hardware received an...

Question 4

An invoice shows a net price of $199.16 after discounts of 22%, 7%, and 5% are deducted.
a) What was the list price of the goods?
b) What single discount would be equivalent to the discount series?

Accepted Answer

The answer of An invoice shows a net price of...

Question 5

A wholesaler lists an item for $48.75 less 20%. What additional "special promotion" discount must be offered to retailers to get the net price down to $36.66?

Accepted Answer

The answer of A wholesaler lists an item for $48.75...

Question 6

The representative for a European ski manufacturer offers Snow 'n Surf Sporting Goods a regular discount of 25%, a volume discount of 10% for an order of at least 100 pairs of skis, and an early booking discount of 5% for orders placed before July 1.
a) If Snow 'n Surf is eligible for all three discounts on skis listed at a suggested retail price of $890, what is the net price per pair of skis?
b) Assuming that Snow 'n Surf qualifies for the volume discount, what is the dollar amount of the early-order discount per pair of skis?
c) The net price after all three discounts on a less expensive model of skis is $410.40. What is the suggested retail price?
d) What single trade discount rate would be equivalent to the three trade discounts?

Accepted Answer

The answer of The representative for a European ski manufacturer...

Question 7

In addition to the regular trade discount of 25% and a volume purchase discount of 8  % from the manufacturer, Appliance Warehouse is offered a further 5% discount for orders placed in January.
a) What is the net price after all three discounts on refrigerators listed at $1,195?
b) What is the list price on an electric range whose net price works out to be $470.25?
c) What single trade discount is equivalent to the three trade discounts?
d) After the regular and volume discounts are both taken, what dollar amount of savings does the extra discount for January orders represent on a $1,000 list price item?

Accepted Answer

The answer of In addition to the regular trade discount...

Question 8

The evening news reports that the S&P/TSX Index dropped 0.9% on the day to close at 13,123 points. How many points did the index fall?

Accepted Answer

The answer of The evening news reports that the S&P/TSX...

Question 9

Ristorante Italiano made payments of $5,000 on March 29 and $3,000 on April 7 to General
Restaurant Supplies on an invoice for $11,870. The invoice was dated March 21 and carried terms of 1½/10, ½/20, n/30.
a) What is the balance after the second payment?
b) On what date is the balance due?

Accepted Answer

The answer of Ristorante Italiano made payments of $5,000 on...

Question 10

At its current price of $1.10 per share, the price of Apex Resources stock is down 78% from its price 1 year ago. What was that price?

Accepted Answer

The answer of At its current price of $1.10 per...

Question 11

An invoice shows a net price of $176.72 after trade discounts of 30%, 10%, and 2% have been deducted.
a) What was the list price of the goods?
b) What single discount would be equivalent to the discount series?

Accepted Answer

The answer of An invoice shows a net price of...

Question 12

White's Photography received an e-invoice from Fuji Canada dated February 27 of a leap year. The amount of the invoice is $2,896.77 with terms  , 1/30, n/60.
a) What is the last date on which White's is eligible for the 2  % discount?
b) What amount will be required on that date to settle the invoice?
c) Instead of the payment in (b), what amount must be paid on March 29 to settle the invoice?

Accepted Answer

The answer of White's Photography received an e-invoice from Fuji...

Question 13

a) Mirabai's income tax rate on additional income is 42%. She has just received a wage increase of $1.25 per hour. What is her after-tax increase in hourly pay?
b) Shira's tax rate on additional income is 47%. How much extra must he earn to keep an additional $1,000 after tax?

Accepted Answer

The answer of a) Mirabai's income tax rate on additional...

Question 14

The evening news reports that the S&P/TSX Composite Index dropped 1.7% on the day to close at 13,646 points. Rounded to the nearest integer, how many points did the index fall on the day?

Accepted Answer

The answer of The evening news reports that the S&P/TSX...

Question 15

Ever-rest sells its mattresses for $960 less 25%. Posture-Perfect mattresses are listed at $880 less 20% and 5%. What second discount would Ever-rest need to offer to match Posture-Perfect's net price?

Accepted Answer

The answer of Ever-rest sells its mattresses for $960 less...

Question 16

Determine the payment required to settle the invoice on the indicated payment date:

Accepted Answer

The answer of Determine the payment required to settle the...

Question 17

A retailer is offered a regular discount of 25%, a further discount of 7.5% if she places an order exceeding $10,000 (at list prices), and another 5% promotional allowance (discount) for participating in a joint promotion with the distributor.
a) If the retailer is eligible for all three discounts, what will be the net price of an order totalling $11,500?
b) What is the dollar amount of the saving from the quantity discount (assuming that she does not participate in the joint promotion)?
c) What is the dollar amount of the promotional allowance?

Accepted Answer

The answer of A retailer is offered a regular discount...

Question 18

Mapleview Poultry Farms gives convenience stores a discount of 25% on eggs listed at $43.00 per case. What trade discount will Sunnyside Farms have to give on its list price of $44.50 per case to match Mapleview's price to convenience stores?

Accepted Answer

The answer of Mapleview Poultry Farms gives convenience stores a...

Question 19

A uranium mining town reported population declines of 3.2%, 5.2%, and 4.7% for the three successive 5-year periods 1985-89, 1990-94, and 1995-99. If the population at the end of 1999 was 9,320:
a) How many lived in the town at the beginning of 1985?
b) What was the population loss in each of the 5-year periods?

Accepted Answer

The answer of A uranium mining town reported population declines...

Question 20

At its current price of $0.80 per share, the wholesale price of a commodity stock is down 73% from its price one year ago. What was that price?

Accepted Answer

The answer of At its current price of $0.80 per...

Quiz 4: Mathematics of Merchandising

What total amount must be paid on May 4 to settle invoices dated April 20 for $650, April 24 for $790, and April 30 for $465, all with terms 1½/10, n/30?

On May 25, Morris Hardware received an invoice from Precision Tools Inc. for $5,076.64. The invoice was dated May 22 and offered terms of 2/10, 1/20, n/30. What payment will settle the invoice on: a) June 1? b) June 2? c) June 5?

An invoice shows a net price of $199.16 after discounts of 22%, 7%, and 5% are deducted. a) What was the list price of the goods? b) What single discount would be equivalent to the discount series?