Question 1

Lucy and Jonathon own a hot dog stand. To increase sales, they reduce the price of their hot dogs from $1.50 to $0.99. What is the markdown rate?
A) 51%
B) 44%
C) 38%
D) 34%

Accepted Answer

D

Question 2

Mary Ann is a sales associate at a jewelry store. She receives bracelets that cost $115 each and marks them up 35%. What is the selling price of a bracelet?
A) $40.25
B) $74.75
C) $155.25
D) $161.00

Accepted Answer

To find the selling price, we need to add the markup to the cost price: 
Markup = 35% of $115 = $40.25 
Selling price = cost price + markup = $115 + $40.25 = $155.25 
Therefore, the selling price of a bracelet is $155.25, which corresponds to choice letter C.

Question 3

Gretchen knits scarves that she sells online. She uses a markup rate of 68% over the cost of the materials and sells the scarves for $32. What is the markup amount?
A) $23.67
B) $21.76
C) $19.05
D) $12.95

Accepted Answer

D

Question 4

An item that sells for $58.25 and has a markdown rate of 35% will have a sale price of $37.86.

Accepted Answer

The answer of An item that sells for $58.25 and...

Question 5

Which statement is correct to find the markup amount when the cost and selling price are known?
A) The markup amount is the sum of the selling price and the cost.
B) The markup amount is the difference between the selling price and the cost.
C) The markup amount is the markup rate times the cost.
D) The markup amount is the difference between the markup rate and 100%.

Accepted Answer

The markup amount is the difference between the selling price and the cost. This is because in order to find the markup, you need to subtract the cost from the selling price, which gives you the additional amount added to the cost to create the selling price.

Question 6

If the cost is $8.59 and the selling price is $14.19, what is the markup amount?
A) $22.78
B) $14.19
C) $5.60
D) $1.65

Accepted Answer

Markup amount = selling price - cost
Markup amount = $14.19 - $8.59
Markup amount = $5.60

Question 7

The only way to copy a formula or data from one cell to other cells in Excel is with the copy and paste functions on the Ribbon.

Accepted Answer

There are other ways to copy formulas or data in Excel, such as dragging the fill handle or using keyboard shortcuts.

Question 8

A sofa sells for $849. The cost of the sofa is $428. What is the markup rate of the sofa?
A) 30%
B) 48%
C) 50%
D) 98%

Accepted Answer

The markup rate is calculated by dividing the markup (selling price minus cost price) by the cost price, then multiplying by 100 to get a percentage. Markup = $849 - $428 = $421. Markup rate = ($421 / $428) * 100 = 98%.

Question 9

The markup rate of furniture at Al's Furniture Barn is 48%. If the markup amount on an armchair is $123, what is the cost of the armchair?
A) $256.25
B) $186.96
C) $159.04
D) $59.04

Accepted Answer

The answer of The markup rate of furniture at Al's...

Question 10

The cost of a package of pencils is $0.75, and the markup amount is $0.30. What is the markup rate of the pencils?
A) 30%
B) 35%
C) 40%
D) 45%

Accepted Answer

Markup rate can be calculated as (Markup amount/Cost price)*100%.
In this case, markup rate = (0.30/0.75)*100% = 40%. 
Therefore, the correct answer is choice C.

Question 11

A hat from last season is reduced by 60% and the markdown amount is $15. The sale price of the hat is $25.

Accepted Answer

The original price of the hat before the markdown was $37.50. If the markdown amount was $15 (60%), then the sale price would be the original price minus the markdown amount, which is $22.50, not $25.

Question 12

Which statement is true?
A) Selling price equals cost minus markup amount.
B) Markup amount equals cost plus markdown.
C) Markup amount equals cost minus selling price.
D) Selling price equals cost plus markup amount.

Accepted Answer

The formula for calculating the selling price using markup is Selling Price = Cost + (Cost x Markup Percentage). Therefore, the selling price equals the cost plus the markup amount.

Question 13

The original selling price and the sale price of a dress are stored in Cell B2 and Cell C2 in an Excel spreadsheet. The formula, entered in Cell D2, =B2-C2, calculates the markdown rate of the dress.

Accepted Answer

The formula entered in Cell D2, =B2-C2, calculates the discount amount, not the markdown rate. The markdown rate can be calculated by dividing the discount amount by the original selling price, or by subtracting the sale price from the original selling price and dividing by the original selling price.

Question 14

The cost of an oven is $375. If the markup rate is 30% of the selling price, what is the selling price?
A) $112.50
B) $262.50
C) $535.71
D) $675.13

Accepted Answer

First, we need to find the markup amount:
Markup = Selling price - Cost
Since we know the markup rate is 30% of the selling price, we can write:
Markup = 30% * Selling price

Substituting in the given values, we get:
Markup = 0.3 * Selling price

Now we can rearrange the equation to solve for the selling price:
Selling price = Cost + Markup
Selling price = $375 + 0.3 * Selling price
0.7 * Selling price = $375
Selling price = $375 / 0.7
Selling price = $535.71

Therefore, the answer is C, $535.71.

Question 15

If the selling price of a calendar is $12.95 and the markup amount is $4.25, what is the cost?
A) $17.20
B) $12.95
C) $8.70
D) $4.45

Accepted Answer

To find the cost, we need to subtract the markup amount from the selling price.
Cost = Selling price - Markup amount
Cost = $12.95 - $4.25
Cost = $8.70

Question 16

Alice owns a clothing store. She is going to markdown her summer items by 35%. If a dress sells for $57.50, what is the markdown price?
A) $20.13
B) $37.37
C) $55.49
D) $77.63

Accepted Answer

To find the markdown price, we need to multiply the original price by the percentage of the markdown (in decimal form). Thus, the markdown price is:
$57.50 x 0.35 = $20.12 or $20.13 rounded to the nearest cent. Therefore, the best choice is B.

Question 17

A bookshelf with an original price of $78.75 is on sale for $49.61. What is the markdown rate?
A) 33%
B) 35%
C) 37%
D) 42%

Accepted Answer

The markdown rate is calculated as (Original Price - Sale Price) / Original Price * 100. So, (78.75 - 49.61) / 78.75 * 100 = 37%.

Question 18

Magnifying glasses sell for $12.50 and are marked up 32% of the selling price. What is the cost of a magnifying glass?
A) $4.00
B) $6.25
C) $7.75
D) $8.50

Accepted Answer

The answer of Magnifying glasses sell for $12.50 and are...

Question 19

Yolanda owns a flower shop. On the third day after flowers are delivered, she marks down the price 60%. If a bunch of roses originally sold for $26, what is the sale price?
A) $17.40
B) $15.60
C) $12.60
D) $10.40

Accepted Answer

The sale price after a 60% markdown is 40% of the original price. So, $26 * 0.40 = $10.40.

Question 20

Markdown is also called gross profit. It is the difference between cost and selling price.

Accepted Answer

Markdown refers to a reduction in the selling price of a product, while gross profit is the difference between revenue and cost of goods sold. They are not interchangeable terms.

Quiz 9: Markup and Markdown

Lucy and Jonathon own a hot dog stand. To increase sales, they reduce the price of their hot dogs from $1.50 to $0.99. What is the markdown rate?

Mary Ann is a sales associate at a jewelry store. She receives bracelets that cost $115 each and marks them up 35%. What is the selling price of a bracelet?

Gretchen knits scarves that she sells online. She uses a markup rate of 68% over the cost of the materials and sells the scarves for $32. What is the markup amount?

An item that sells for $58.25 and has a markdown rate of 35% will have a sale price of $37.86.

Which statement is correct to find the markup amount when the cost and selling price are known?

If the cost is $8.59 and the selling price is $14.19, what is the markup amount?

The only way to copy a formula or data from one cell to other cells in Excel is with the copy and paste functions on the Ribbon.

A sofa sells for $849. The cost of the sofa is $428. What is the markup rate of the sofa?

The markup rate of furniture at Al's Furniture Barn is 48%. If the markup amount on an armchair is $123, what is the cost of the armchair?

The cost of a package of pencils is $0.75, and the markup amount is $0.30. What is the markup rate of the pencils?

A hat from last season is reduced by 60% and the markdown amount is $15. The sale price of the hat is $25.

Which statement is true?

The original selling price and the sale price of a dress are stored in Cell B2 and Cell C2 in an Excel spreadsheet. The formula, entered in Cell D2, =B2-C2, calculates the markdown rate of the dress.

The cost of an oven is $375. If the markup rate is 30% of the selling price, what is the selling price?

If the selling price of a calendar is $12.95 and the markup amount is $4.25, what is the cost?

Alice owns a clothing store. She is going to markdown her summer items by 35%. If a dress sells for $57.50, what is the markdown price?

A bookshelf with an original price of $78.75 is on sale for $49.61. What is the markdown rate?

Magnifying glasses sell for $12.50 and are marked up 32% of the selling price. What is the cost of a magnifying glass?

Yolanda owns a flower shop. On the third day after flowers are delivered, she marks down the price 60%. If a bunch of roses originally sold for $26, what is the sale price?

Markdown is also called gross profit. It is the difference between cost and selling price.