Question 1

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
-
A)Cost Price: $36.53
Selling Price: $25.09
B)Cost Price: $0.25
Selling Price: $11.69
C)Cost Price: $11.44
Selling Price: $22.88
D)Cost Price: $25.09
Selling Price: $36.53

Accepted Answer

To find the missing numbers, we need to calculate the percent of markup or percent of discount.
For A: 
Percent of markup = (Selling Price - Cost Price)/Cost Price x 100
= (25.09 - 36.53)/36.53 x 100
≈ -31.4%
So, the missing number is 31.4% of discount.

For B:
Percent of markup = (Selling Price - Cost Price)/Cost Price x 100
= (11.69 - 0.25)/0.25 x 100
≈ 4576%
This is not a reasonable markup rate, so there must be an error in the given data.

For C:
Percent of markup = (Selling Price - Cost Price)/Cost Price x 100
= (22.88 - 11.44)/11.44 x 100
≈ 99.6%
So, the missing number is 99.6% of markup.

For D:
Percent of markup = (Selling Price - Cost Price)/Cost Price x 100
= (36.53 - 25.09)/25.09 x 100
≈ 45.5%
So, the missing number is 45.5% of markup.

The best choice is D because it has a reasonable markup rate and matches the given data.

Question 2

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
-The Oak House had a markup of $23.24 on an oak table that they sold for $70.99. Find (a)the cost, (b)the markup on cost, and (c)the selling price as a percent of cost.
A)$70.99, 32.7%, 305.5%
B)$47.75, 48.7%, 148.7%
C)$47.75, 32.7%, 67.3%
D)$94.23, 24.7%, 75.3%

Accepted Answer

(a) Cost = Selling Price - Markup = $70.99 - $23.24 = $47.75. (b) Markup on Cost = ($23.24 / $47.75) * 100 = 48.7%. (c) Selling Price as a Percent of Cost = ($70.99 / $47.75) * 100 = 148.7%.

Question 3

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.
-
A) 
B) 
C) 
D)

Accepted Answer

Since the markup is based on cost, we can set up the equation: 
Cost + Markup = Price 
We are given that the cost is $538.50, and the markup is 8%. The markup is calculated as a percentage of the cost, so we can find it by multiplying the cost by 0.08: 
$538.50 x 0.08 = $43.08 
Adding the markup to the cost gives us: 
$538.50 + $43.08 = $581.58 
Therefore, the price is $581.58. Looking at the answer choices, only option C has a price of $581.58, which means it is the best choice. Markup is based on cost, so we need to calculate the cost of the item. 
Let's use the formula: Selling Price = Cost + Markup
From the given information, we know that the selling price is $29.99 and the markup rate is 20%. 
Let's use algebra to solve for the cost:
Selling Price = Cost + Markup 
$29.99 = Cost + 0.2Cost 
$29.99 = 1.2Cost 
Cost = $24.99 
Now we can use the cost to find the markup: 
Markup = Selling Price - Cost 
Markup = $29.99 - $24.99 = $5.00

Using this information, we can check each answer choice to see if it matches our calculations:

A) Cost = $15.99, Markup = $14.00
B) Cost = $16.99, Markup = $13.00
C) Cost = $24.99, Markup = $5.00
D) Cost = $32.99, Markup = $-3.00 (This choice doesn't make sense because the markup is negative)

Therefore, the best choice is C, with a cost of $24.99 and a markup of $5.00.

Question 4

Solve the problem.
-Over a year period, a hardware store made the following purchases of hammers: 24 hammers at $6.89, 30 hammers at $6.08, 36 hammers at $4.69, and 26 hammers at $8.05. Inventory at the end of the year shows 35 hammers remain. Find the inventory value by (a) weighted average method, (b) FIFO Method, and (c) LIFO Method. Round final answers to the nearest cent
A)(a)$188.48
(b)$241.15
(c)$219.10
B)(a)$224.96 (b)$232.24
(c)$281.75
C)(a)$219.10 (b)$232.24
(c)$251.51
D)(a)$219.10 (b)$251.51
(c)$232.24

Accepted Answer

To find the inventory value using different methods, we first calculate the total cost and number of hammers purchased, then apply each method:Total hammers purchased = 24 + 30 + 36 + 26 = 116 hammersTotal hammers sold = 116 - 35 = 81 hammers(a) Weighted Average Method:Total cost = (24*$6.89) + (30*$6.08) + (36*$4.69) + (26*$8.05) = $165.36 + $182.40 + $168.84 + $209.30 = $725.90Average cost per hammer = $725.90 / 116 = $6.26 (rounded to two decimal places)Inventory value = 35 hammers * $6.26 = $219.10(b) FIFO (First In, First Out) Method:Sell the hammers in the order they were purchased. The last 35 hammers would be from the last purchases:- All 26 hammers at $8.05- 9 hammers from the 36 at $4.69Inventory value = (26*$8.05) + (9*$4.69) = $209.30 + $42.21 = $251.51(c) LIFO (Last In, First Out) Method:Sell the hammers in reverse order of purchase. The remaining 35 hammers would be from the first and second purchases:- All 24 hammers at $6.89- 11 hammers from the 30 at $6.08Inventory value = (24*$6.89) + (11*$6.08) = $165.36 + $66.88 = $232.24Therefore, the correct answer is (a) $219.10, (b) $251.51, (c) $232.24.

Question 5

Solve the problem. Round rates to
-A local dealer sells baseballs for $25.00 each. If this is a 61.9% markup on cost, find the equivalent markup percent on the selling price
A)38.2%
B)61.9%
C)61.8%
D)70.3%

Accepted Answer

The markup percent on the selling price is calculated by dividing the markup by the selling price. If the selling price is $25 and this includes a 61.9% markup on cost, we first find the original cost. Let the cost be $C. Then, $25 = C + 0.619C = 1.619C. Solving for C gives C = $25 / 1.619 ≈ $15.44. The markup in dollars is $25 - $15.44 = $9.56. The markup percent on the selling price is ($9.56 / $25) * 100% ≈ 38.2%.

Question 6

Find the average inventory.
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A)$31,645.00
B)$21,096.67
C)$21,472.00
D)$63,290.00

Accepted Answer

To find the average inventory, we need to add the beginning and ending inventory and divide by 2.

[(30,500.00 + 12,693.33)/2] + [(23,721.67 + 17,471.67)/2] + [(16,540.00 + 26,615.00)/2] = 21,096.67

Therefore, the best choice is B.

Question 7

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
-Toys4U purchases tricycles for $26. The store's operating expenses are 20% of cost with a net profit of 11% of cost. Find the selling price of one tricycle.
A)$34.06
B)$17.94
C)$23.66
D)$28.34

Accepted Answer

Operating expenses = 20% of $26 = $5.20
Total cost = $26 + $5.20 = $31.20
Net profit = 11% of $31.20 = $3.43
Selling price = $31.20 + $3.43 = $34.06, rounded to the nearest cent. Therefore, the best choice is A.

Question 8

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
-James Page works in a local music store where he sells guitars for $130.62 each. If he maintains a markup of 51.1% on selling price, what is the cost of a guitar to James?
A)$197.37
B)$63.87
C)$66.75
D)$194.49

Accepted Answer

The cost of a guitar to James can be found by dividing the selling price by 1 plus the markup rate (expressed as a decimal). The markup rate is 51.1% or 0.511. Therefore, the cost = $130.62 / (1 + 0.511) = $130.62 / 1.511 ≈ $86.47. However, there seems to be a mistake in my calculation as none of the provided options match this result. Given the options, none directly align with the correct process for calculating the cost based on the provided markup and selling price. Re-evaluating the correct approach: The selling price is based on a markup on the cost, not the selling price itself. If the markup is on the selling price, the formula to find the cost given the selling price and markup percentage would be different, but the provided information and options suggest a misunderstanding in the calculation process.

Question 9

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
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A)Cost Price: $75.22
% Markup on Cost: 24.9%
B)Cost Price: $56.47
% Markup on Cost: 33.2%
C)Cost Price: $93.97
% Markup on Cost: 24.9%
D)Cost Price: $93.97
% Markup on Cost: 20.0%

Accepted Answer

To find the selling price, we can use the formula:
Selling Price = Cost Price + (Markup % on Cost/100) * Cost Price
A) Selling Price = 75.22 + 0.249 * 75.22 = $93.93
B) Selling Price = 56.47 + 0.332 * 56.47 = $74.86
C) Selling Price = 93.97 + 0.249 * 93.97 = $117.22
D) Selling Price = 93.97 + 0.20 * 93.97 = $112.76
Since we want to maximize our profit, we should choose the option with the highest selling price. Therefore, the best choice is B.

Question 10

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
-The cost of an item is $76. For a special year-end sale the price is marked down 20%. Find the selling price of the item.
A)$63.33
B)$15.20
C)$60.80
D)$91.20

Accepted Answer

The answer of Solve the problem. Round dollars to the...

Question 11

Find the average inventory.
-
A)$319,371.00
B)$79,842.75
C)$63,874.20
D)$76,064.00

Accepted Answer

To find the average inventory, we need to add the beginning and ending inventory values and divide by 2. 
(22,000+37,685)/2 = 29,842.50
(134,000+25,685)/2 = 79,842.50
(42,000+85,748)/2 = 63,874.00
(45,000+107,128)/2 = 76,064.00
The closest option to this is B, with an average inventory of $79,842.75.

Question 12

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
-
A)Cost = $98.37
Selling price = $177.56
% Markup on selling price = 55.4%
B)Cost = $63.75
Selling price = $142.94
% Markup on selling price = 55.4%
C)Cost = $63.75
Selling price = $142.94
% Markup on selling price = 44.6%
D)Cost = $98.37
Selling price = $177.56
% Markup on selling price = 44.6%

Accepted Answer

To solve this, we can use the formula:

% Markup on selling price = (Selling Price - Cost) / Selling Price x 100%

First, we can compute the markup on one base by using the formula above with the given values:

A) % Markup on selling price = (177.56 - 98.37) / 177.56 x 100% = 44.6%
B) % Markup on selling price = (142.94 - 63.75) / 142.94 x 100% = 55.4%
C) % Markup on selling price = (142.94 - 63.75) / 142.94 x 100% = 55.4%
D) % Markup on selling price = (177.56 - 98.37) / 177.56 x 100% = 44.6%

Next, we can use the markup on one base that we just computed to find the missing quantities. We can use the formula:

Selling Price = Cost x (1 + % Markup on selling price)

To find the missing cost and selling price in each scenario:

A) Cost = 177.56 / (1 + 0.554) = $114.10
C) Cost = 142.94 / (1 + 0.446) = $98.37

Therefore, the best choices are D only, since it is the only scenario where the given selling price and markup on selling price match the computed values, and the cost can be found using the markup on one base method.

Question 13

Find the average inventory.
-
A)$32,341.75
B)$32,920.00
C)$25,873.40
D)$129,367.00

Accepted Answer

The answer of Find the average inventory.
-
A)$32,341.75
B)$32,920.00
C)$25,873.40
D)$129,367.00...

Question 14

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.
-
A)Original price = $36.62
$ Markdown = $12.87
B)Original price = $62.36
$ Markdown = $12.87
C)Original price = $66.88
$ Markdown = $17.39
D)Original price = $32.10
$ Markdown = $17.39

Accepted Answer

In order to determine which choice is the best, we need to calculate the percentage markdown for each option.

For option A, the markdown percentage would be:
($12.87 / $36.62) x 100% = 35.17%

For option B, the markdown percentage would be:
($12.87 / $62.36) x 100% = 20.67%

For option C, the markdown percentage would be:
($17.39 / $66.88) x 100% = 26.01%

For option D, the markdown percentage would be:
($17.39 / $32.10) x 100% = 54.14%

Since we want to get the most bang for our buck, we should choose the option with the highest markdown percentage. The best choice is therefore C, which has a markdown percentage of 26.01%.

Question 15

Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
-The Galerie d'Art paid $138.60 for a limited edition Graux print. The original selling price was $180.18, but this was marked down 25% to make room for incoming pieces. If operating expenses are 28% of cost, find the operating loss and the absolute loss.
A)operating loss: $45.04
Absolute loss: $3.46
B)operating loss: $3.46
Absolute loss: $42.27
C)operating loss: $42.27
Absolute loss: $45.04
D)operating loss: $42.27
Absolute loss: $3.46

Accepted Answer

Operating loss is calculated as 28% of the cost ($138.60), which is $38.81 (rounded to the nearest cent). The absolute loss is the difference between the cost and the final selling price after the discount. The selling price after a 25% discount on $180.18 is $135.14 ($180.18 - 25% of $180.18), so the absolute loss is $138.60 (cost) - $135.14 (selling price) = $3.46. However, there seems to be a mistake in my calculation of the operating loss, which should be based on the cost. Correctly, 28% of $138.60 is approximately $38.80, indicating a discrepancy in the provided options and explanation. The correct approach to find the operating loss would involve calculating 28% of the cost directly, and the absolute loss correctly follows from the difference between the cost and the selling price. Given the options, none directly match the correct calculation for operating loss based on the cost provided, suggesting a need for recalculating based on the correct method. The absolute loss calculation stands correct as per the explanation.

Question 16

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.
-
A) 
B) 
C) 
D)

Accepted Answer

Since the markup is based on cost, we can use the formula Cost = Price / (1 + Markup%) to find the cost of the item. Then, we can use the cost and markup percentage to find the price.

For option A, we have Cost = 107.99 / 1.3 = 83.07, which means the markup is 30%. So the price should be Price = Cost * (1 + Markup%) = 83.07 * 1.3 = 107.99, which matches the given price. Therefore, this option is correct.

For option B, we have Cost = 209.99 / 1.5 = 139.99, which means the markup is 50%. So the price should be Price = Cost * (1 + Markup%) = 139.99 * 1.5 = 209.99, which matches the given price. Therefore, this option is correct.

For option C, we have Cost = 499.99 / 1.25 = 399.99, which means the markup is 25%. So the price should be Price = Cost * (1 + Markup%) = 399.99 * 1.25 = 499.99, which matches the given price. Therefore, this option is correct.

For option D, we have Cost = 199.99 / 1.4 = 142.85, which means the markup is 40%. So the price should be Price = Cost * (1 + Markup%) = 142.85 * 1.4 = 199.99, which matches the given price. Therefore, this option is correct.

However, options A, B, and D have prices with repeating decimals, which is not practical in real-world scenarios. Therefore, option C is the best choice since it has a price that can be rounded to a more practical number ($499.99).

Question 17

Find the missing quantities. If there is no operating loss or absolute loss, write "none."
-
A)Operating exp = $7.97
Operating loss = $6
Absolute loss = $1.97
B)Operating exp = $6
Operating loss = $1.97
Absolute loss = $7.97
C)Operating exp = $6
Operating loss = $7.97
Absolute loss = $1.97
D)Operating exp = $49.62
Operating loss = $41.65
Absolute loss = $7.97

Accepted Answer

The answer of Find the missing quantities. If there is...

Question 18

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
-A local dealer sells baseballs for $25 each. If $8.89 is the cost, what is the percent of markup on the selling price?
A)13.8%
B)60.8%
C)39.2%
D)64.4%

Accepted Answer

First, we need to calculate the selling price by adding the markup to the cost:

Selling price = Cost + Markup
Selling price = $8.89 + $25 = $33.89

Now, we can calculate the percent markup on the selling price:

Percent Markup = (Markup / Selling price) x 100%
Percent Markup = ($16.11 / $33.89) x 100%
Percent Markup = 47.6%

Rounding to the nearest tenth of a percent, the answer is 47.6%, which is closest to answer choice D) 64.4%.

Question 19

Find the stock turnover at cost and at retail. Round to the nearest hundredth.
-
A)Turnover at cost = 2.36
Turnover at retail = 2.34
B)Turnover at cost = 5.17
Turnover at retail = 5.12
C)Turnover at cost = 5.12
Turnover at retail = 5.17
D)Turnover at cost = 2.19
Turnover at retail = 12.09

Accepted Answer

The stock turnover at cost and at retail is calculated by dividing the total cost or retail value of goods sold by the average inventory value. Based on the given information, the turnover at cost is 5.17 (calculated by dividing $3,221,000 cost of goods sold by $622,000 average inventory) and the turnover at retail is 5.12 (calculated by dividing $5,108,000 retail value of goods sold by $997,000 average inventory). Therefore, the best choice is B.

Question 20

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar.
-
A)a)$5,907 b)$2,850 c)$1,932
B)a)$2,274 b)$2,158 c)$2,261
C)a)$2,274 b)$2,261 c)$2,158
D)a)$5,907 b)$2,627 c)$1,716

Accepted Answer

The inventory values using the FIFO and LIFO methods are very close to each other, indicating that the company has had a fairly stable cost of goods sold and inventory over time. The weighted-average method results in a significantly higher inventory value, which may not accurately represent the cost of the inventory on hand. Therefore, the best choice is to use the FIFO or LIFO method. Between the two, the LIFO method may be a better choice as it results in a lower inventory value, which can lead to tax savings. The LIFO method results in the lowest inventory valuation because the most recent (and thus, most expensive) units are assumed to be sold first. This is not a good choice for a company that wants to show higher net income, as it results in a higher cost of goods sold and lower net income. 
The weighted-average method calculates an average cost per unit based on the total cost of goods available for sale divided by the total number of units available for sale. This method is a good choice if the company has a mix of old and new inventory, as it takes into account the total cost of goods available for sale. 
The FIFO method assumes that the first units purchased are the first units sold, resulting in a higher inventory valuation because the older (and thus, less expensive) units are assumed to be sold first. This method is a good choice for a company that wants to show a higher net income, as it results in a lower cost of goods sold and higher net income. 
Based on this, the best choice is the weighted-average method, as it takes into account the total cost of goods available for sale and provides a more accurate valuation of the inventory.

Quiz 8: Mathematics of Selling

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent. -

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent. -The Oak House had a markup of $23.24 on an oak table that they sold for $70.99. Find (a) the cost, (b) the markup on cost, and (c) the selling price as a percent of cost.

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent. -

Solve the problem. Round rates to -A local dealer sells baseballs for $25.00 each. If this is a 61.9% markup on cost, find the equivalent markup percent on the selling price

Find the average inventory. -

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent. -Toys4U purchases tricycles for $26. The store's operating expenses are 20% of cost with a net profit of 11% of cost. Find the selling price of one tricycle.

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent. -James Page works in a local music store where he sells guitars for $130.62 each. If he maintains a markup of 51.1% on selling price, what is the cost of a guitar to James?

Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent. -

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent. -The cost of an item is $76. For a special year-end sale the price is marked down 20%. Find the selling price of the item.

Find the average inventory. -

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent. -

Find the average inventory. -

Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent. -

Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent. -

Find the missing quantities. If there is no operating loss or absolute loss, write "none." -

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent. -A local dealer sells baseballs for $25 each. If $8.89 is the cost, what is the percent of markup on the selling price?

Find the stock turnover at cost and at retail. Round to the nearest hundredth. -

Find the inventory values using (a) the weighted-average method, (b) the FIFO method, and (c) the LIFO method. Round final answers to the nearest dollar. -