Questions from Business Mathematics

Q: The markup on desserts in a restaurant is 70% of the

The markup on desserts in a restaurant is 70% of the menu price. The restaurant is adding key lime pie to its dessert list. The cost to the restaurant works out to $1.25 per slice. Determine: 1. The m...

Q: Bath ’n Bedroom sets its prices to allow for overhead expenses that

Bath ’n Bedroom sets its prices to allow for overhead expenses that average 50% of unit cost and a normal profit of 30% of cost. For towel sets priced at $39.89, determine: 1. The wholesale cost. 2. T...

Q: The expected profits from a $52,000 investment are $

The expected profits from a $52,000 investment are $8000 in Year 1, $12,000 in each of Years 2 to 5, and $6000 in each of Years 6 and 7. 1. What is the investment’s payback period? 2. If the firm’s re...

Q: The price of tools is set by a hardware store to cover

The price of tools is set by a hardware store to cover operating expenses at 40% of cost, and to generate an operating profit of 25% of cost. What is the rate of markup on selling price for a rotary s...

Q: Just Desserts buys cheesecakes from General Bakeries at $33.60

Just Desserts buys cheesecakes from General Bakeries at $33.60 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at $6.50 per slice. Calculate the rate of markup...

Q: The Annapolis Rotary Club sells hot dogs for $1.95

The Annapolis Rotary Club sells hot dogs for $1.95 each at the annual Annapolis Fall Fair. The Rotary Club buys wieners at $3.95 per package of 10 wieners, and hot dog buns at $2.90 per dozen. It cost...

Q: Maritime Cellular purchases a Samsung smartphone model for $395 less trade

Maritime Cellular purchases a Samsung smartphone model for $395 less trade discounts of 20% and 10%. Maritime’s overhead expenses are $59 per unit. 1. What should be the selling price to generate a pr...

Q: Damsels clothing store orders a line of jeans at a suggested retail

Damsels clothing store orders a line of jeans at a suggested retail price of $58 less trade discounts of 30% and 7%. The manager intends to sell the jeans at the suggested retail price. If overhead ex...

Q: The rate of markup on the cost of a toaster selling at

The rate of markup on the cost of a toaster selling at $54.95 is 45%. 1. What was the cost of the toaster to the retailer? 2. What is the rate of markup on selling price?

Q: A retailer obtains a product at a unit cost of $51

A retailer obtains a product at a unit cost of $51.30 and sells it for $79.90. Determine: 1. The rate of markup on cost. 2. The rate of markup on selling price.