Questions from Business Mathematics

Q: Is it possible for the rate of markup on selling price to

Is it possible for the rate of markup on selling price to exceed 100%? Explain.

Q: Is it possible for the rate of markup on cost to exceed

Is it possible for the rate of markup on cost to exceed 100%? Explain.

Q: Under what unusual circumstance will the rate of markup on cost equal

Under what unusual circumstance will the rate of markup on cost equal the rate of markup on selling price?

Q: Solve the equations. x + 2 5 = x +

Solve the equations. x + 2 5 = x + 0.8

Q: Does a retailer break even if an item is sold at the

Does a retailer break even if an item is sold at the cost C?

Q: Suppose an item that originally had a 40% rate of markup

Suppose an item that originally had a 40% rate of markup on cost is marked down 40%. Is its reduced selling price equal to C? Explain.

Q: An item is marked down by the same percentage as the rate

An item is marked down by the same percentage as the rate of markup on selling price. Will the reduced operating profit be positive, negative, or zero? Explain.

Q: What effect will each of the following have on a product’s unit

What effect will each of the following have on a product’s unit contribution margin? In each case, assume that all other variables remain unchanged. 1. The business raises the selling price of the pro...

Q: Once a business is operating beyond the break-even point,

Once a business is operating beyond the break-even point, why doesn’t each additional dollar of revenue add a dollar to net income?

Q: What effect will each of the following have on a firm’s break

What effect will each of the following have on a firm’s break-even point? In each case, assume that all other variables remain unchanged. 1. Fixed costs decrease. 2. Variable costs increase. 3. Sales...