Ch.8 Markups and Markdowns: Perishables and Test Bank 13e - Business Math Procedures 13e Test Bank with Answers by Jeffrey Slater. DOCX document preview.
Practical Business Math Procedures, 13e (Slater)
Chapter 8 Markups and Markdowns: Perishables and Breakeven Analysis
1) Gross profit is net sales minus the cost of bringing merchandise into the store.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
2) Operating expenses are the unusual expense of doing business.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
3) Gross profit plus operating expenses equals net income.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
4) Markup represents an amount needed to cover operating expenses.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
5) Selling price = cost − markup.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
6) When markups are based on cost, the selling price is 100%.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
7) The amount of markup is represented as the portion only when markups are based on cost.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
8) The selling price can be calculated if the cost and the percent markup on cost are given.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
9) Actual cost is equal to the cost times the markup percent on cost plus 1.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
10) Cost is equal to the selling price divided by (1 + markup percent on cost) when markup is based on cost.
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
11) When markup is based on selling price, the cost is 100%.
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
12) When markup is based on selling price, the cost is the base.
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
13) Percent markup on the selling price is equal to the amount of markup divided by the selling price.
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
14) If the selling price and percent markup on selling price are given, the actual cost can be calculated.
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
15) Selling price times 1 minus markup percent on selling price will equal the cost if markup is based on selling price.
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
16) Dollar markup divided by the selling price equals percent markup on cost.
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
17) Percent markup on selling price can be converted to percent markup on cost by a formula.
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
18) Dollar markdowns represent price increases to the original selling price.
Difficulty: 1 Easy
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
19) The markdown percent is the amount of markdown divided by the new sale price.
Difficulty: 2 Medium
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
20) A final selling price may be the result of a series of markdowns (and possibly some markups).
Difficulty: 1 Easy
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
21) To place a price on perishable items, there is no need to calculate the total cost as well as total selling price of the items.
Difficulty: 1 Easy
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
22) Contribution margin is selling price plus unit cost.
Difficulty: 2 Medium
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (1) Calculate contribution margin.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
23) Breakeven point is fixed cost divided by contribution margin.
Difficulty: 2 Medium
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (2) Calculate breakeven point.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
24) Net income is calculated as:
A) Net sales + costs - operating expenses
B) Net sales - costs - operating expenses
C) Net sales + costs + operating expenses
D) Net sales - costs + operating expenses
E) None of these
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
25) Markup is:
A) Selling price + cost
B) Selling price divided by cost
C) Selling price - cost
D) Selling price × (1 + cost)
E) None of these
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
26) When markup is based on cost:
A) Cost is the portion
B) Markup is the rate
C) Cost is equal to selling price
D) Cost is 100%
E) None of these
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
27) An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is:
A) $197.40
B) $179.40
C) $149.70
D) $194.70
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
28) Gap sells jeans that cost $21.00 and sell for $29.95. The percent of markup based on cost is:
A) 42.62%
B) 46.26%
C) 49.88%
D) 48.9%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
29) (1 + markup percent on cost) × cost equals:
A) Cost at wholesale
B) Cost at retail
C) Selling price
D) Markup
E) None of these
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
30) If percent markup on cost and selling price are known, one is able to compute the:
A) Amount of markdown
B) Amount of spoilage
C) Cost
D) Selling price at wholesale
E) None of these
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
31) When markups are based on the selling price, the:
A) Selling price is the portion
B) Selling price is 100%
C) Selling price is cost - markup
D) Selling price is 100% + cost percent
E) None of these
Difficulty: 1 Easy
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
32) Bill's Furrier marks up mink coats $3,000. This represents a 50% markup on cost. What is the cost of the coats?
A) $1,500
B) $6,000
C) $4,500
D) $9,000
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
33) Markdowns may be caused by:
A) Lack of seasonal changes
B) Lack of special promotions
C) Style changes
D) Decreased competition
E) None of these
Difficulty: 1 Easy
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
34) The markdown percent is calculated by:
A) Amount of markdown divided by sale price
B) Amount of markdown divided by original selling price
C) Sale price divided by amount of markdown
D) Original selling price divided by amount of markdown
E) None of these
Difficulty: 2 Medium
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
35) Setting a price on perishable items does not include:
A) Calculating total cost
B) Calculating total selling price
C) Calculating a selling price per day
D) Determining number of units available for sale
E) None of these
Difficulty: 2 Medium
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
36) A computer sells for $995, which is marked up 35% of the selling price. The cost of the computer is:
A) $1,343.25
B) $1,433.52
C) $1,350.77
D) $1,530.77
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
37) Red Jeans Inc. sells jeans that cost $16.55 for a selling price of $35.99. The percent of markup based on cost is:
A) 17.46%
B) 94.44%
C) 4.02%
D) 7.07%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
38) J.C. Penney sells a Timex watch for $139.99 that cost $89.97. J.C. Penney's percent of markup based on the selling price is:
A) 35.56%
B) 35.57%
C) 35.73%
D) 37.52%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
39) A local True Value Hardware Store marks its goods up 38% on cost. If a snow blower cost True Value $400, the selling price would be:
A) $525.00
B) $552.00
C) $542.00
D) $452.00
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
40) Jay King, owner of a local Bed and Bath store, knows that his customers will pay at most $299 for an air mattress. Assuming Jay wants a 40% markup on the selling price, the most he could pay the manufacturer for the air mattress is:
A) $197.04
B) $179.04
C) $104.65
D) $179.40
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
41) Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is:
A) $98.65
B) $96.65
C) $88.65
D) $87.65
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
42) Zale's bought a tea set for $1,400. Zale's wants to markup the set 55% of the selling price. The selling price of the tea set should be:
A) $2,030
B) $2,300
C) $3,111.11
D) $3,111.10
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
43) At the end of the summer, Walgreens advertised blow-up pools for 66% off the regular price. Jeff Jones saw a pool with a regular price of $49.99. The dollar markdown is:
A) $39.29
B) $32.99
C) $33.99
D) $33.39
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
44) Mr. Small, the store manager for Jay's Appliance, is having a difficult time placing a selling price on a refrigerator that cost $410. Mr. Small knows his boss would like to have a 45% markup based on cost. The selling price should be:
A) $745.45
B) $754.54
C) $594.50
D) $549.50
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
45) Belle's Bake Shop makes croissants that cost $1.75 each. Past experience shows that 10% of the croissants will spoil and have to be discarded. Assuming Belle wants a 45% markup based on cost and produces 300 croissants, each croissant should sell for:
A) $2.28
B) $2.54
C) $2.45
D) $2.82
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
46) A local Dunkin' Donuts makes blueberry muffins that cost $.69 each. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming that this shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for:
A) $0.90
B) $0.91
C) $1.50
D) $1.06
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
47) A local Dot Dress Shop is selling a suit for $99. Because of changing styles, the first markdown was 8% and second markdown was 25%. The suit still did not sell, so a final markdown of 10% was taken. The sale price is currently:
A) $68.31
B) $86.31
C) $61.84
D) $61.48
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
48) Contribution margin is:
A) Net sales
B) Revenues plus variable cost
C) Revenues minus variable cost
D) Revenues divided by fixed cost
E) None of these
Difficulty: 2 Medium
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (1) Calculate contribution margin.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
49) Lester Co. produces toy kites. It has a fixed cost of $62,150. If the selling price per unit is $9.50 and the variable cost per unit is $6.25, the breakeven point is:
A) $9,207
B) 6,542
C) 22,600
D) 29,860
E) None of these
Difficulty: 3 Hard
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (2) Calculate breakeven point.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
50) Fathers' Day suits were advertised for 35% off the regular price. A suit regularly sells for $210. The amount of the markdown is:
A) $37.50
B) $136.50
C) $73.50
D) $163.50
E) None of these
Difficulty: 2 Medium
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
51) Jackie Smith, a customer of Roger Blank, will pay only $190 for a tennis racket. Assuming Roger works on a 60% markup on the selling price, the most Roger will pay the manufacturer is:
A) $76
B) $114
C) $67
D) $141
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
52) A video game sells at Arnolds for $14.99. Arnolds marks the game up at 40% of the selling price. The cost of the video game to Arnold is:
A) $6.00
B) $8.99
C) $6.50
D) $9.10
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
53) Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille's percent of markup based on the selling price is:
A) 38.9%
B) 28.94%
C) 40.73%
D) 40.37%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
54) A wooden duck with a regular selling price of $125.99 is marked down to $79.99. The percent of markdown is:
A) 57.51%
B) 36.51%
C) 35.61%
D) 55.71%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
55) Kohl's sells watches that cost $6.95 for a selling price of $39.99. What is the percent markup on cost? (Round to the nearest tenth percent.)
A) 17.4%
B) 82.6%
C) 575.9%
D) 475.4%
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
56) An Apple iPad sells for $699.00 on eBay. The markup is 30% on cost. What is the total cost of the iPad sold on eBay?
A) $537.69
B) $489.30
C) $908.70
D) 490.00
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
57) Macy's Department Stores markup men's cologne 63% on cost for an 8-ounce bottle. A bottle of cologne costs Macy's $23.00. What is the selling price for the 8-ounce bottle?
A) $31.51
B) $37.49
C) $37.47
D) $37.00
E) None of these
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
58) Johnny Mac's Sporting Goods bought a baseball glove from Rawlings Sporting Goods for $66.00. They want to markup the glove 70% on selling price. What should Johnny's sell the glove for?
A) $113.22
B) $179.82
C) $246.42
D) $220.00
E) None of these
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
59) Straub's Bakery makes 200 Danish cakes that cost $2.70 each. Straub's needs a 66% markup on cost and normally discards 10% of what it makes. At what price should Straub's sell the Danish cakes?
A) $4.48
B) $4.98
C) $4.84
D) $4.89
E) None of these
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
Match the following terms with their definitions.
A) No profit, no loss
B) Regular expenses of doing business
C) Dollar profit
D) Goods or services with a limited life
E) Price reductions
F) Price paid to supplier
G) Cost is base
H) Selling price is base
I) Original selling price minus current price
J) Selling price minus cost
K) Net sales - cost of goods sold
L) Difference between selling price and variable cost
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
61) Overhead
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
62) Contribution margin
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
63) Breakeven point
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
64) Perishables
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
65) Dollar markup
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
66) Dollar markdown
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
67) Percent markup on selling price
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
68) Cost
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
69) Net income
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
70) Markdowns
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
71) Gross profit
Difficulty: 1 Easy
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%); LU 08-03 Markdowns and Perishables; LU 08-04 Breakeven Analysis
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.; 08-03 (1) Calculate markdowns; compare markdowns and markups.; 08-03 (2) Price perishable items to cover spoilage loss.; 08-04 (1) Calculate contribution margin.; 08-04 (2) Calculate breakeven point.
Bloom's: Remember
Type: Static
Accessibility: Keyboard Navigation
Answers: 60) G 61) B 62) L 63) A 64) D 65) J 66) I 67) H 68) F 69) C 70) E 71) K
72) Assume markup is based on cost. Complete:
Cost | % of Markup | Amount of Markup | Selling Price |
$500 | 30% | A | B |
A. $150 = ($500 × .30); B. $650 = ($500 + $150).
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
73) Assume markup is based on cost. Solve for the actual cost (round to nearest cent):
Selling price $600
Markup % on cost 35%
Actual cost?
$600/1.35 = $444.44.
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
74) Assume markup is based on cost. If the cost of a table is $62 and it sells for $110, what is the percent of markup based on cost? Round to the nearest hundredth percent.
110 - 62 = 48; $48/$62 = 77.42%.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
75) Assume markup is based on selling price. Complete:
Selling Price | % of Markup | Dollar Markup | Cost |
$750 | 30% | A | B |
B. $525
A. $225 = .30 × 750; B. $525 = $750 - $225
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
76) Assume markup is based on selling price. Solve for the selling price (round to nearest cent):
25% markup on selling price
Actual cost $650
Selling price?
$650/.75 = $866.67.
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
77) Complete (round answers to nearest cent):
Item | Total Qty Bought | Unit Cost | Total Cost | Markup % on Cost | Total Sales | % That Will Spoil | Selling Price Per Unit |
Brownies | 40 | $ .70 | A | 40% | B | 10% | C |
TC = 40 × .7 = 28; TS = 28 + (.4 × 28) = 39.20; At that will spoil = .10 × 40 = 4; Selling price = 39.20 (40 - 4) = 1.09
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
78) Calculate the final selling price to the nearest cent (round each calculation to nearest cent as needed):
Original Selling Price | 1st Markdown | 2nd Markdown | Markup | Final Markdown |
$6,000 | 9% | 13% | 4% | 9% |
$6000 × .91 × .87 × 1.04 × .91 = $4495.59
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Analyze
Type: Static
Accessibility: Keyboard Navigation
79) Convert a 40% markup percent on cost to markup percent on selling price. (Round to nearest hundredth percent.)
.40/(1 + .40) = 28.57%.
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
80) Breck Hardware purchased from Black & Decker 10 Dustbusters for $24.95 each. What should Breck charge its customers for each Dustbuster if it has a 39.5% markup on cost? (Round to the nearest cent.)
24.95 × 1.395 = $34.80525; Rounded to the nearest cent = $34.81.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
81) Sullivan's Handbags marks up its bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85.00. What is the most she could pay for the bag and still retain the 45% markup of the selling price?
C = $85 × (1 - .45); then C = $46.75.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
82) Pete's Deli sells corned beef at $2.55 per pound. It pays its wholesaler $1.95 per pound. What is the markup rate based on A) cost and B) selling price? (Round to nearest tenth percent.)
A. 2.55 - 1.95 = .6; .60 / 1.95 = 30.8%; B. 60 / 2.55 = 23.5%.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%); LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
83) In downtown Boston, a bakery produces 200 bagels a day at a cost of $.20 each. It is expected that 25% of the bagels will spoil before being sold. Assuming the bakery expects to make a 40% markup on its cost, what should the selling price of each bagel be?
TC = 200 × .2 = $40; TS = 40 + (.4 × 40) = $56; Spoilage = .25 × 200 = 50; Selling Price = 56 / (200 - 50) = $.37
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
84) Bill Angel marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price?
$565.80 = $410 × 1.38.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
85) Talbot's sells ladies sport coats for $99.99 that cost $65.50. What is the percent markup on cost? Round to nearest hundredth percent.
Markup = 99.99 - 65.50 = 34.49; Markup Percent = 34.49/65.50 = 52.66%
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
86) Tri-City sells a microwave for $550. Tri-City marks up the microwave 70% on cost. What are the cost and markup of the microwave?
Cost = $550 / (1 + .7) = $323.53; Markup = 550 - 323.53 = $226.47
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.; 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
87) Bill's Hardware marks up snow blowers $130 and sells them for $485. Markup is on cost. What are the cost and percent markup to the nearest hundredth percent?
Cost = 485 - 130 = 355; Percent Markup = 130 / 355 = 36.62%
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
88) Munroe Corporation sells Nautilus equipment for $399.95. Munroe marks up the equipment 30% on the selling price. What did the equipment cost Munroe? Round to the nearest cent.
Cost = 399.95 × (1 - .3) = $279.965; Rounded to the nearest cent = $279.97.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
89) Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?
$11,400 / (9.95 - 7.10) = $11,400 / $2.85 = 4,000 toy footballs.
Difficulty: 3 Hard
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (2) Calculate breakeven point.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
90) Pat Maninan, a customer of Brown Co., will pay $400 for a new kitchen table. Brown has a 55% markup on the selling price. What is the most Brown can pay for this kitchen table?
Cost = $400 × (1 - .55) = 400 / .45 = $180.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
91) French Co. marks up its goods 45% on cost. What is French's equivalent markup on selling price? Round to the nearest hundredth percent.
.45/(1 + .45) = 31.03%.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
92) Lucy's Bakeshop makes cupcakes that cost $.95 each. Lucy knows that 20% of the cupcakes will spoil. Assume Lucy wants a 35% markup on cost and produces 60 cupcakes. What should Lucy charge for each cupcake? Round to the nearest cent.
TC = .95 × 60 = 57; TS = 57 + (.35 × 57) = 76.95; Spoilage = .20 × 60 =12; SP = 76.95 / (60 - 12) = $1.60
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
93) Calculate the dollar markup and selling price.
Cost | % of Markup on Cost | Dollar Markup | Selling Price |
$400 | 20% | A | B |
A. 400 × .2 = 80; B. 400 + 80 = 480
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
94) Calculate the dollar markup and selling price.
Cost | % of Markup on Cost | Dollar Markup | Selling Price |
$1,200 | 30% | A | B |
A. 1200 × .3 = 360; B. 360 + 1200 = 1500
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
95) Selling price $500
Markup % on cost 40%
Actual cost?
Cost = 500 / (1+.4) = $357.14
Difficulty: 2 Medium
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
96) Selling price $700
Markup % on cost 30%
Actual cost?
Cost = 700 / (1.3) = $538.46
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
97) Selling price $700
Markup % on cost 30%
Actual cost?
Cost = 700 / (1.3) = $538.46
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
98) A. If the cost of a TV is $120 and it sells for $200, what is the percent of markup based on cost? Round to the nearest hundredth percent. B. Check your answer.
A. Percent Markup = (200 - 120) / 120 = 66.67%; B. Check: 80 / .6667 = $120 Cost
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
99) Calculate the dollar markup and cost.
Selling Price | % Markup on Selling Price | Dollar Markup | Cost |
$800 | 25% | A | B |
A. 800*.25 = $200; B. $600. C = 800 × (1 - .25) = 600
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
100) Calculate the dollar markup and cost.
Selling Price | % Markup on Selling Price | Dollar Markup | Cost |
$900 | 30% | A | B |
A. Dollar Markup = 900 x .3 = $270; B. Cost = 900 - 270 = $630.
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
101) 26% Markup on Selling Price
Actual Cost = $700
Selling Price = ?
$700/.74 = $945.95
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
102) 28% markup on selling price
Actual cost $900
Selling price?
$900/.72. = $1,250
Difficulty: 2 Medium
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Understand
Type: Static
Accessibility: Keyboard Navigation
103) Calculate the total cost, total sales, and selling price per unit.
Item | Total Quantitty Bought | Unit Cost | Total Cost | Markup % on Cost | Total Sales | % Spoilage | Selling Price per Unit Cost |
Brownies | 50 | $ .65 | A | 35% | B | 20% | C |
A. TC = .65 × 50 = $32.50; B. TS = 32.50 + (.35 × 32.50) = $43.88; C. Amt Spoilage = .2 × 50 = 10; Selling Price =(43.88) / (50 - 10) = $1.10
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
104) Calculate the total cost, total sales, and selling price per unit.
Item | Total Qty Bought | Unit Cost | Total Cost | Markup % on Cost | Total Sales | % That Will Spoil | Selling Price Per Unit |
Eclairs | 30 | $ .90 | A | 45% | B | 30% | C |
A. $27 = (30 × $.90); B. $39.15 = $27 + $12.15; C. $39.15/21 = $1.86
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
105) Calculate the final selling price.
Original Selling Price | 1st Markdown | 2nd Markdown | Markup | Final Markdown | Final Selling Price |
$4,000 | 10% | 15% | 6% | 8% | ? |
4000 × .9 × .85 × 1.06 × .92 = $2,984.11.
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
106) Calculate the final selling price.
Original Selling Price | 1st Markdown | 2nd Markdown | Markup | Final Markdown | Final Selling Price |
$7,000 | 15% | 10% | 8% | 8% | --- |
7000 × .85 × .9 × 1.08 × .92 = $5,320.73.
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
107) Convert a 40% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.)
.40/(1 + .40) = 28.57%
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
108) Convert a 30% markup percent on cost to markup percent on selling price. (Round to the nearest hundredth percent.)
.3/(1 + .30) = 23.08%
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
109) A toaster is marked up $10 and sells for $45.00. Find the cost and percent markup if the markup is based on cost. (Round to the nearest hundredth percent.)
Cost = $45 - $10 = $35; Markup = $10/$35 = 28.57%.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
110) Blue Jeans Inc. sells jeans that cost $15.99 for a selling price of $42.95. What is the percent of markup based on cost? (Round to the nearest hundredth percent.)
Percent Markup = (42.95 - 15.99) /$15.99 = 168.61%.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
111) Find the cost and markup of a stove if it sells for $400 and is marked up 100% of the cost.
Cost = 400 / (1 + 1) = 400 / 2 = $200; Markup = 400 - 200 = $200
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (3) Calculate cost when you know the selling price and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
112) Al Shelf knows his goods are marked up 36% on cost. If a TV cost Al $280, what would the selling price be?
$280 × 1.36 = $380.80.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
113) Louis's Hat Shop bought a hat for $95. Louis wants to markup the hat by 55% of the selling price. What should the selling price of the hat be?
$95/(1 - .55) = $211.11.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
114) A video game sells at Arnolds for $199.95. Arnolds marks the game up at 30% of the selling price. What was the cost of the video game to Arnolds?
Cost = 199.95 × (1 - .3) = $139.97
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
115) Jane Corporation produces fudge bars. Total fixed cost is $55,500. Each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. What is the breakeven point for Jane Corporation?
$55,500/$(4.95 - 3.10) = 55,500 /1.85 = 30,000.
Difficulty: 3 Hard
Topic: LU 08-04 Breakeven Analysis
Learning Objective: 08-04 (2) Calculate breakeven point.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
116) Jorge Keegan sells lamps for $92.10 that cost him $62.00. What is Jorge's percent of markup based on the selling price? (Round to nearest hundredth percent.)
Markup = 92.10 - 62 = $30.10; Markup % = $30.10/$92.10 = 32.68%.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (1) Calculate dollar markup and percent markup on selling price.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
117) Evelyn Smith, a customer of Bill Blank, will pay only $125 for a tea set. Assuming Bill works on a 40% markup on the selling price, what is the most Bill could pay the manufacturer for this tea set?
$125 × .60 = $75.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
118) A wooden duck with a regular selling price of $109.45 is marked down to $69.50. What is the percent of markdown based on the regular price? (Round to the nearest tenth percent.)
Markdown = 109.45 - 69.50 = $39.95; $39.95/$109.45 = 36.5%
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (1) Calculate markdowns; compare markdowns and markups.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
119) Mary's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming Mary wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?
TC = 1.5 × 200 = $300; TS = 300 + 300 × .4 = $420; Spoilage = .2 × 200 = 40; Selling Price = 420 / (200 - 40) = $2.63
Difficulty: 3 Hard
Topic: LU 08-03 Markdowns and Perishables
Learning Objective: 08-03 (2) Price perishable items to cover spoilage loss.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
120) Convert a 36% markup on selling price to the equivalent percent markup on cost.
.36/(1 - .36) = .36/.64 = 56.3%.
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (4) Convert from percent markup on cost to percent markup on selling price and vice versa.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
121) Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)
S = 7 / (1 - .33) = $10.45
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (2) Calculate selling price when cost and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
122) Lonnie Ianazzo, owner of Anthony's Jewelers in Tulsa, Oklahoma, marks up diamond earrings 83% on cost. The earrings cost Anthony's Jewelers $120 each. At what price should Anthony's sell the earrings?
Markup = 120 × .83 = $99.60; Selling Price = $120 + 99.60 = $219.60
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (2) Calculate selling price when you know the cost and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
123) Best Buy sells Kindle E-readers for $79.99 that cost the store $16.09. What is the percent markup on cost? (Round to the nearest tenth.)
Markup = $79.99 - $16.09 = $63.90; $63.90/$16.09 = 3.97141, or 397.1%.
Difficulty: 3 Hard
Topic: LU 08-01 Markups Based on Cost (100%)
Learning Objective: 08-01 (1) Calculate dollar markup and percent markup on cost.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
124) Hannecke Hardware sells a wheelbarrow for $69.99. Hannecke marks up the wheelbarrow 40% on the selling price. What did the wheelbarrow cost Hannecke?
Markup = 69.99 × .4 = $28.00; Cost = 69.99 - 28.00 = $41.99
Difficulty: 3 Hard
Topic: LU 08-02 Markups Based on Selling Price (100%)
Learning Objective: 08-02 (3) Calculate cost when selling price and percent markup on selling price are known.
Bloom's: Apply
Type: Static
Accessibility: Keyboard Navigation
Document Information
Connected Book
Business Math Procedures 13e Test Bank with Answers
By Jeffrey Slater