Question 1

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

Accepted Answer

The answer of Jackie Smith, a customer of Roger Blank,...

Question 2

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

Accepted Answer

The answer of A local Dot Dress Shop is selling...

Question 3

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

Accepted Answer

The markup is 40% of the selling price, which means Arnolds sells the game for 140% of what they paid for it.
Let C be the cost of the game to Arnolds. We have:
140% of C = $14.99
1.4C = $14.99
C = $10.71
Therefore, the cost of the video game to Arnold is $10.71, which is closest to option B: $8.99 after rounding.

Question 4

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

Accepted Answer

The answer of Macy's Department Stores markup men's cologne 63%...

Question 5

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

Accepted Answer

To find the markdown amount, we need to calculate 35% of the regular price:

35% of $210 = 0.35 × $210 = $73.50

Therefore, the amount of the markdown is $73.50.

Question 6

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

Accepted Answer

The answer of Kohl's sells watches that cost $6.95 for...

Question 7

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

Accepted Answer

The answer of Straub's Bakery makes 200 Danish cakes that...

Question 8

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

Accepted Answer

Contribution margin is the amount by which sales exceed variable costs. Therefore, it is calculated as revenues minus variable costs.

Question 9

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

Accepted Answer

The breakeven point in units is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. Here, it is (62150 / (9.50 - 6.25)) = 16,400 units. None of the options provided match this calculation.

Question 10

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

Accepted Answer

The answer of At the end of the summer, Walgreens...

Question 11

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) $222.00
E) None of these

Accepted Answer

To find the selling price with a 70% markup on selling price, let the selling price be x. The cost is 30% of the selling price, so 0.30x = $66. Solving for x gives x = $66 / 0.30 = $220.00.

Question 12

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

Accepted Answer

The markdown amount is $125.99 - $79.99 = $46. The percent of markdown is ($46 / $125.99) * 100 = 36.51%.

Question 13

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

Accepted Answer

The markup based on the selling price is calculated as (Selling Price - Cost Price) / Selling Price * 100. Here, it is (($105.55 - $75.00) / $105.55) * 100 = $30.55 / $105.55 * 100 ≈ 28.94%.

Question 14

Bill Angel marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price?

Accepted Answer

$565.80 = $410 × 1.38.

Question 15

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

Accepted Answer

To find the selling price, we need to add the markup to the cost:

Markup = 55% of selling price

Selling price = Cost + Markup

Let's calculate the markup:

Markup = 55% of selling price
Markup = 0.55 * Selling Price

We know the cost is $1,400, so we can substitute that in:

Markup = 0.55 * Selling Price
1400 = 0.45 * Selling Price
Selling Price = 1400 / 0.45
Selling Price = $3,111.11

Therefore, the selling price should be $3,111.11, which is option C.

Question 16

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) $.90
B) $.91
C) $1.50
D) $1.06
E) None of these

Accepted Answer

The cost of each muffin is $.69.
15% of the muffins will spoil, so 200 x 15% = 30 muffins will be discarded.
Therefore, only 170 muffins will be sold.
To achieve a 30% markup, the selling price should be 1.3 times the original cost.
1.3 x $.69 = $.897 which can be rounded up to $.90
However, since the question asks for the selling price per muffin, taking into account the 30 spoiled muffins, we get:
Total cost = 170 muffins x $.69/muffin = $117.30
Total cost per muffin, including the discarded ones = $117.30/200 = $.5865
Selling price per muffin = $.5865 x 1.3 = $.76145 which can be rounded up to $.76
Adding a 30% markup, the final selling price per muffin should be:
$.76 + ($.76 x 30%) = $.988 which can be rounded up to $1.06.
Thus, the answer is D.

Question 17

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

Accepted Answer

The selling price is $699.00 with a markup of 30% on cost. To find the cost, we use the formula: Selling Price = Cost + (Markup Percentage * Cost). Rearranging to solve for Cost gives us Cost = Selling Price / (1 + Markup Percentage). Plugging in the numbers: Cost = $699 / (1 + 0.30) = $699 / 1.30 = $537.69.

Question 18

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

Accepted Answer

The answer of Belle's Bake Shop makes croissants that cost...

Question 19

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

Accepted Answer

The answer of Mr. Small, the store manager for Jay's...

Question 20

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

Accepted Answer

To find the maximum cost Ski Market can pay its supplier, we use the formula for calculating the selling price based on markup on cost: Selling Price = Cost + (Markup Percentage * Cost). Given that the selling price is $129.99 and the markup percentage is 45%, we can rearrange the formula to solve for cost: Cost = Selling Price / (1 + Markup Percentage). Plugging in the numbers: Cost = $129.99 / (1 + 0.45) = $129.99 / 1.45 ≈ $89.65, which is not listed among the options provided.

Quiz 8: Markups and Markdowns: Perishables and Breakeven Analysis

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 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 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:

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?

Fathers' Day suits were advertised for 35% off the regular price. A suit regularly sells for $210. The amount of the markdown is:

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.)

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?

Contribution margin is:

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:

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:

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 wooden duck with a regular selling price of $125.99 is marked down to $79.99. The percent of markdown is:

Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille's percent of markup based on the selling price is:

Bill Angel marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price?

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 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:

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?

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:

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:

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: