UNIVERSITY OF HARGEISA.

FACULTY OF BUSINESS AND ECONOMICS.

BUSINESS MATHIMATICS.
MID-TERM.
2C.
Answer All the Following Questions.( Each one Carries 4%)

1) What was the original selling price of a bag, currently on sale for $99 after a 25%
markdown?
2) In January, Swim and Sport purchased designer bathing suits for $75 each. The original
markup was 75% based on the selling price. In March, the shop took a 35% markdown by
having a sale. After three weeks, the sale was over and all merchandise was marked up
25%. By April, many of the bathing suits were still in stock, so the shop took a 30%
markdown to stimulate sales. At the end of June, the balance of the bathing suits were
put on clearance sale, with a final markdown of another 25%. Compute the intermediate
prices and the final selling price of the bathing suits. Round to the nearest cent.?
3) Arleys Bakery makes fat-free cookies that cost $1.50 each. Arley expects 15% of the
cookies to fall apart and be discarded. Arley wants a 45% markup on cost and produces
200 cookies. What should Arley price each cookie? Round to the nearest cent.?
4) The Muffin Shop makes no-fat blueberry muffins that cost $.70 each. The Muffin Shop
knows that 15% of the muffins will spoil. If The Muffin Shop wants 40% markup on cost
and produces 800 muffins, what should The Muffin Shop price each muffin? Round to
the nearest cent.

Prepared by Dr.Abdinasir Ali Abdi

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5) Writing.com has a beginning inventory of 16 sets of pens at a cost of $2.12 each. During
the year, Writing.com purchased 8 sets at $2.15, 9 sets at $2.25, 14 sets at $3.05, and 13
sets at $3.20. By the end of the year, 29 sets were sold. Calculate (a) the number of pen
sets in stock and (b) the cost of ending inventory and (c) The Cost of Goods Sold under
LIFO, FIFO, and weighted-average methods. ?

Prepared by Dr.Abdinasir Ali Abdi

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