Question: An invoice for $2365.00 has terms

> 1. Merchant A operates on a rate of markup on cost of 45%. If she later marks the price of a few items down to their cost in order to attract additional customers to the store, what rate of markdown can she advertise? 2. Merchant B operates on a 45% rate

> Digital Devices plans to stop carrying the Casio FC-100 calculator. It normally marks up the calculator from the $71.50 wholesale cost to the regular selling price of $99.95. 1. What is the normal rate of markup on selling price? 2. What rate of markdown

> Garden Centre purchases lawnmowers from a wholesaler for $249 and marks them up by 25% of selling price. At the end of the summer, a scratched floor-display mower’s price is reduced to 10% above cost. What percentage price reduction should the price tag

> Calculate the reduced price if an item costing $19.25 is marked up by 35% of the selling price and then marked down by 25%.

> The manager of a home and garden store buys patio furniture sets for $580 each and marks them up by 50% of cost. In late August, he clears out remaining inventory at a 30% markdown. Determine: 1. The clearance price. 2. The rate of markdown (from the reg

> An item was marked up from $24.99 to $49.98 before it was marked down to $24.99 and sold at cost. Determine: 1. The rate of markup on cost. 2. The rate of markdown.

> An item was marked up from $58.50 to $95.00, then later marked down by 30% during a spring sale. Determine: 1. The original rate of markup on selling price. 2. The price during the spring sale.

> A pharmacy marks up its springtime shipment of sunglasses to provide for overhead expenses of 40% of cost and a profit of 70% of cost. At the end of the summer, what rate of markdown can the pharmacy apply to the remaining inventory of sunglasses and sti

> The maximum amount an individual can contribute to her Registered Retirement Savings Plan (RRSP) for a year is set from time to time by the regulations of the Income Tax Act. For the year 2020, the maximum contribution is the lesser of $27,230 or 18% of

> Workwear Station uses a markup on cost of 60% to establish its retail prices. This pricing rule builds in a profit of 25% of cost. What rate of markdown can Workwear Station offer and just break even on the reduced price?

> Morgan’s Department Store mailed out 15%-off coupons for its 20th Anniversary Sale. The coupons may be used for any products in the store. For items already on sale, the coupon applies to the sale price. 1. What price would a coupon-holder pay for a beds

> Merchants C and D sell the same article at $69.95 and $64.95, respectively. They both advertise that they will match the price offered by any other store on any product that they stock. 1. What discount rate must C give to match D’s price marked down by

> Calculate the reduced selling price on an item that is marked down 55%, an amount equivalent to a discount of $358.

> Bargain Express advertises cookware sets at 40% off. Their ad claims, “You save $102.” What are the regular and reduced selling prices for the cookware sets?

> The sign on a rack of sport coats reads: “All prices already marked down 30%!” What is the regular selling price of a coat marked at: 1. $100? 2. $196.49?

> An item costing $185 was marked up by 50% of cost and subsequently marked down by $60 during a sale. Determine: 1. The regular selling price. 2. The rate of markdown.

> A men’s clothing store marks up suits by 75% of cost. This provides an operating profit of 15% of the selling price. If a suit’s cost to the store is $132, determine: 1. Its selling price. 2. The rate of markup on selling price. 3. The operating profit.

> The price structure in a store is such that, for every $100 of sales, $40 is the cost of the goods sold and $45 goes to overhead costs. For an item with a wholesale cost of $119, determine: 1. Its selling price. 2. The rate of markup on cost. 3. The rate

> A merchant prices his inventory to allow for operating expenses at 30% of selling price and an operating profit of 20% of selling price. If an item is priced at $49.98, determine: 1. The rate of markup on selling price. 2. Its cost. 3. The rate of markup

> Projects X and Y both require an initial investment of $100,000. Project X will generate an annual operating profit of $25,000 per year for six years. Project Y produces no profit in the first year, but will yield an annual profit of $25,000 for the seve

> A retailer prices her goods to cover operating expenses at 30% of cost and to generate a profit of 20% of cost. For an item she buys from her wholesaler at $49, determine: 1. Its selling price. 2. The rate of markup on cost. 3. The rate of markup on sell

> Unit operating expenses for an item costing $30 are estimated at 40% of cost, and the desired operating profit is 25% of cost. Determine: 1. The selling price. 2. The rate of markup on cost. 3. The rate of markup on selling price.

> Loblaws purchases raisins at $85.75 per 25-kg box and then sells them in its bulk foods department for $0.59 per 100 g. What are Loblaws’ rate of markup on cost and rate of markup on selling price of the raisins?

> Omega Restaurant buys Shiraz wine at $16.95 per bottle, and sells it to customers at $34.95 per bottle. Calculate Omega’s rate of markup on cost and rate of markup on selling price of the wine.

> Digital Devices sets its retail prices on computers, monitors, and printers to generate a 30% rate of markup on selling price. Overhead expenses normally work out to be 30% of cost. What is the operating profit on a monitor that costs $345?

> Prestige Clothiers’ regular prices for menswear are set to provide a 40% rate of markup on selling price. Overhead expenses are 30% of cost on average. What is the operating profit on a suit that sells for $495?

> Village Foods employs a 35% rate of markup on the cost of all dairy products. The store’s overhead averages out to 20% of sales each month. What is the operating profit on a 4-L pail of ice cream for which the wholesale cost is $4.65?

> Beaver Building Supply obtains 4-ft by 8-ft sheets of half-inch plywood from Macmillan Forest Products at $54 per sheet less discounts of 30% and 5%. The trade price is to be set to cover Beaver’s overhead of 20% of the selling price and to provide an op

> A florist buys potted poinsettias from a nursery at $15 each, less series discounts of 40% and 10%. The florist prices her stock to allow for overhead of 55% of cost and an operating profit of 20% of the selling price. At what price should she sell the p

> Workers World buys rubber boots from the manufacturer for $15 per pair. The manager applies a 90% rate of markup on cost when pricing footwear. What is the operating profit per pair if overhead expenses work out on average to be 20% of the selling price?

> A firm is considering the purchase of a $30,000 machine that would save labour costs of $5000 per year in the first three years and $6000 per year for the next four years. Will the firm purchase the machine if the payback requirement is: 1. Five years? 2

> The rate of markup on the cost of fresh peaches in a grocery store is 125% because of the large losses from spoilage and bruising while the peaches are in storage and on display. What is the rate of markup on selling price?

> If the rate of markup on selling price of lettuce in a grocery store is 60%, what is the rate of markup on cost?

> Pet Mart purchased a litter of six puppies from a reputable breeder for $121 each. If the rate of markup on selling price is 45%: 1. What is the selling price of each puppy? 2. What is the rate of markup on cost?

> 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.

> 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?

> 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 expenses are 25% of the selling price: 1. What will be t

> 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 profit of $40 per phone? 2. What is the rate of markup o

> 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 costs $78 for enough condiments for 1000 hot dogs. What ar

> 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 on cost and the rate of markup on selling price.

> 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 saw selling for $129?

> 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 required payback period is four years, will it make the

> 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. The rate of markup on selling price.

> 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 menu price of a slice of pie. 2. The rate of markup on

> The markup on greeting cards in a drug store is 65% of the selling price. For a card priced at $4.95, determine: 1. Its cost. 2. The rate of markup on cost.

> A grocery store prices fresh produce at twice its cost to the store. Determine: 1. The rate of markup on cost. 2. The rate of markup on selling price.

> An item that costs a store $152.50 is marked up by $47.45. Determine: 1. The rate of markup on cost. 2. The rate of markup on selling price.

> On June 3, Josh made a payment of $500 on an invoice for $1283.50, dated May 25. The terms of payment were 3/10, n/30. What amount was credited to Josh’s account?

> The terms of payment on an invoice for $2835.49 are 2/15, n/45. The balance owed after a payment within the discount period is $1135.49. What was the amount of the payment?

> White’s Photography received an e-invoice from Fuji Canada dated February 27 of a leap year. The amount of the invoice is $2896.77, with terms 2 1 2 /10, 1/30, n/60. 1. What is the last date on which White’s is eligible for the 2 1 2 % discount? 2. What

> On May 25, Morris Hardware received an invoice from Precision Tools Inc. for $5076.64. The invoice was dated May 22 and offered terms of 2/10, 1/20, n/30. What payment will settle the invoice on: 1. June 1? 2. June 2? 3. June 5?

> Investment proposals A and B require initial investments of $45,000 and $35,000, respectively. Both have an economic life of four years with no residual value. Their expected profits are as follows: If the firm’s cost of capital is 7%,

> On March 26, Silke received an invoice in the amount of $5445, dated March 23, with terms 3/10, 1 1 2 /20, n/60. What payment on April 13 will settle the invoice?

> On June 29, Josef received an invoice for $815.49, dated June 27. If the terms of the invoice are 2/10, 1/20, n/60, what amount is required on July 7 to pay the invoice in full?

> An invoice for $2956.60, dated February 2, has terms 2/15, 1/30, n/90. What three equal payments on February 17, March 2, and May 2 will settle the account?

> Sutton Trucking made two equal payments, on June 25 and July 15, on an invoice for $6350 dated June 15 with terms 3/10, 1/30, n/60. The payments reduced the balance owed on the invoice to $1043.33. What was the amount of each payment?

> On August 6, A&B Construction has three outstanding invoices payable to Excel Builder’s Supply. Invoice 535, dated July 16, is for $3228.56; Invoice 598, dated July 24, is for $2945.31; and Invoice 678, dated August 3, is for $6217.69. All invoices have

> Peak Roofing sent Jensen Builders an invoice dated July 12 for $5400 with terms 3/10, 1 1 2 /20, n/45. Jensen made a payment of $2000 on July 20, and a second payment on August 1 that reduced the balance owed to $1000. What was the size of the second pay

> Ballard Jewellers received an invoice dated August 22 from Safeguard Security Systems for $2856.57 with terms 2 1 2 /10, 1/20, n/45. Ballard made payments of $900 on September 1, $850 on September 10, and $700 on September 30. What amount was still owed

> Jake received an invoice for $2500 with terms 5/10, 2/30, n/60. After one payment within the 10-day discount period, a second payment of $1057.37 within the 30-day discount period paid off the balance. What was the amount of the first payment?

> The terms of payment on a $2365 invoice dated October 25 were 1 1 2 /15, n/45. What amount will settle the invoice on November 10?

> What total amount must be paid on July 4 to settle invoices dated June 20 for $485, June 24 for $367, and June 30 for $722, all with terms 1 1 2 /10, n/30?

> A capital investment requiring a single initial cash outflow is forecast to have an operating profit of $50,000 per year for five years. There is no salvage value at the end of the five years. If the investment has an IRR of 8%, calculate its payback per

> The Simcoe School Board has three invoices from Johnston Transport, all with terms 2/10, 1/20, n/60. Invoice 277, dated October 22, is for $14,200; Invoice 327, dated November 2, is for $8600; and Invoice 341, dated November 3, is for $11,500. What total

> A payment of $3000 on a $6000 invoice qualified for the larger cash discount in 3/10, 1/20, n/30. What additional payment 18 days after the invoice date will settle the invoice?

> Northern Outfitters’ invoice to Rico’s Menswear for $2463.80 was dated October 22 with terms 2/10, n/30. Late payments are charged a 1% penalty on the overdue balance. Rico made payments of $1000 on October 31 and $800 on November 20. What amount will pa

> Ristorante Italiano made payments of $5000 on March 29 and $3000 on April 7 to General Restaurant Supplies on an invoice for $11,870. The invoice was dated March 21 and carried terms of 1 1 2 /10, 1 2 /20, n/30. 1. What is the balance after the second pa

> On March 25, Hannah received an invoice in the mail from Carpet Country for $4235. The invoiced was dated March 22 and had terms 3/15, 1 1 2 /30, n/60. If she made payments of $1000 on each of April 2, April 9, and April 22, how much does Hannah still ow

> Payments of $1000 on January 5 and $800 on January 16 were made on a $2500 invoice dated December 27. The terms on the invoice were 4/10, 2/20, n/45. What was the balance owed after the second payment?

> Mayfair Distributors sent Bed ’n Bath an invoice dated December 23 for $5344.90 with terms 2/10, 1/20, n/30. The penalty on overdue accounts is 1 1 2 % of the overdue balance. 1. What is the balance after a payment of $3000 on January 3? 2. What addition

> Contemporary Furnishings received an invoice on April 18 from Palliser Furniture. The invoice for $18,976.45 was dated April 16 with terms 2/15, 1/30, n/45. 1. What is the balance after a payment of $10,000 on May 1? 2. What additional payment on May 15

> An invoice for $3868, dated June 26, had terms 2/10, 1/20, n/45. What amount was credited for: 1. A payment of $1000 on July 5? 2. A payment of $1000 on July 16? 3. A payment of $1000 on August 10?

> An invoice for $2365, dated September 25, has terms of payment 2/20, n/30. What amount on October 5 will pay the invoice in full?

> Two mutually exclusive investments are available to a firm. Project C, requiring a capital investment of $200,000, will generate an annual profit of $43,000 for six years. Project D is expected to yield an annual profit of $30,000 for six years on an ini

> Calculate the missing values. List Price ($) = ? Discount rate (%) = 12.5 Discount amount ($) = ? Net price ($) = 2849.00

> Calculate the missing values. List Price ($) = ? Discount rate (%) = ? Discount amount ($) = 258.75 Net price ($) = 891.25

> Calculate the missing values. List Price ($) = ? Discount rate (%) = ? Discount amount ($) = 12.33 Net price ($) = 15.07

> Calculate the missing values. List Price ($) = ? Discount rate (%) = 40 Discount amount ($) = 7.99 Net price ($) = ?

> Calculate the missing values. List Price ($) = ? Discount rate (%) = 35 Discount amount ($) = 612.50 Net price ($) = ?

> Calculate the missing values. List Price ($) = 49.95 Discount rate (%) = ? Discount amount ($) = ? Net price ($) = 34.97

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

> In addition to the basic trade discount of 20%, an outboard engine 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. 1. After

> 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. 1.

> 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?

> A company is evaluating two mutually exclusive projects. Both require an initial investment of $250,000 and have no appreciable disposal value. Their expected profits over their five-year lifetimes are as follows: The company’s cost of

> 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. 1. If the

> 1. In announcing its third-quarter results, Prime Manufacturing reported a decline in revenue of $26.43 million representing a 3.65% decrease from the second quarter. Rounded to the nearest $0.01 million, what is the third quarter’s revenue? 2. Prime als

> An invoice shows a net price of $176.72 after trade discounts of 30%, 10%, and 2% have been deducted. 1. What was the list price of the goods? 2. What single rate of trade discount would be equivalent to the discount series?

> Holiday Paws Kennel offers a standard 20% coupon discount, a 15% multi-pet discount, and a further 10% discount for boarding pets longer than 7 days. If their daily rate for boarding is $55 per pet, how much would it cost to board 2 cats for 8 days compa

> A manufacturer of snowmobiles sells through distributors in some regions of the country, through wholesalers in other regions, and directly to retailers in its home province. The manufacturer gives a 25% trade discount to retailers, an additional 10% dis

> Calculate the missing values. List Price ($) = 127 Discount rate (%) = ? Discount amount ($) = ? Net price ($) = 106

> Office Outlet offers a standard 7% discount on all orders and a special 5.5% volume discount if the purchaser orders at least 1000 units. South District High School is placing an order for pens costing $1.69 each. How much money could they save by placin

> At its current price of $0.80 per share, Golden Egg Resources stock is down 73% from its price one year ago. What was that price?

> 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?

> 1. 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? 2. Shira’s tax rate on additional income is 47%. How much extra must he earn to keep an addit

> A company is examining two mutually exclusive projects. Project X requires an immediate investment of $100,000 and produces no profit until Year 3. Then the annual profit is $40,000 for Years 3 to 5 inclusive. Project Y requires an investment of $50,000

> Subject to certain restrictions, you may elect to start collecting the Canada Pension Plan (CPP) monthly retirement pension at any time after you reach age 60. The payments are then reduced by 0.6% for each month the pension is collected before age 65. F

> Cynthia and Byron sell mutual funds for Syndicated Investors. Purchasers of mutual funds from agents of Syndicated Investors pay a front-end commission of 5.5%. The commission is paid on the total amount paid to Syndicated Investors, not on just the net

> A merchant pays a 3.5% fee to the Bank of Montreal on all MasterCard sales. 1. What amount will she pay on sales of $17,564 for a month? 2. What were her gross sales for a month in which the bank charged total fees of $732.88?

> The net proceeds to the vendor of a house after payment of a 5.5% real estate commission were $321,111. What price did the house sell for?