Exam

Name___________________________________

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

1) A hitch and trailer listed at $2149.00 has a net price of $1360.00. What is the rate of 1)
discount?

2) Compute the rate of discount allowed on a rotor-tiller that lists for $441.00 and is sold for 2)
$205.00.

3) Compute the rate of discount allowed on a cordless drill that lists for $149.99 and is sold 3)
for $79.99.

4) What rate of discount has been allowed if an item that lists for $720.00 is sold for $681.57? 4)

5) A store advertises a discount of $54.72 on sandals. If the discount is 33.5%, for how much 5)
were the sandals sold?

6) A store advertises a discount of $10.00 on a shirt. If the discount is 30%, for how much was 6)
the shirt sold?

7) Kaz purchases an article with a net price of $114.54 after a discount of 17% was allowed. 7)
Calculate the list price.

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8) A 12 % discount on a pair of washer and dryer that Gayle purchased, amounted to 8)
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$156.00. Calculate the net price.

9) A 14% discount on a dryer that Sean purchased, amounted to $70.00. Calculate the net 9)
price.

10) A 47% discount allowed on an article amounts to $3.57 What is the net price? 10)

11) A fridge was sold during a clearance sale for $657.00. If the fridge was sold at a discount of 11)
34%, what was the list price?

12) A television set was sold during a clearance sale for $299.00. If the television was sold at a 12)
discount of 70%, what was the list price?

13) An invoice shows a net purchase price of $1809.13 after the subtraction of discounts of 13)
12.5%, 25%, 8.3%. What was the list price?

14) An invoice shows a net price of $231.88 after discounts of 17.8%, 8.6%, 6.3%. What was the 14)
list price?

15) An invoice for $6200.00, dated May 28, 3/10, 1/20, n/60, was received on May 30. What 15)
payment must be made on June 5 to reduce the debt to $4760.00?

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 16) A gross profit of $181.00 is made on a sale. If the gross profit is 22.5% based on selling 16)
price, what was the cost?

17) A gross profit of $800.00 is made on a sale of services. If the gross profit is 15% based on the 17)
selling price, what was the cost?

18) A gross profit of $96.00 is made on a sale. If the gross profit was 52% based on selling price, 18)
what was the cost?

19) What is the regular selling price of an item that cost $1345.00 if the markup is 27% of the 19)
regular selling price?

20) A retailer buys an appliance for resale at $2123.00 less 27%, 20%. The store marks the 20)
merchandise to cover expenses of 23% of the regular selling price and a net profit of 12.9%
of the regular selling price. During a clearance sale, the appliance is sold at a markdown of
22%. What is the operating profit or loss?

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

21) An invoice dated on March 31 was received on April 2. It was for 30 training manuals at $25.00 21)
each and four posters at $40.00 each. The terms of the invoice were 5/10, 2/30, n/60. What is the
invoice payment amount on April 3?
A) 750.50 B) 864.50 C) 891.80 D) 64.50 E) 910.00

22) A wine merchant buys a case of wine for a listed price of $144.00 less 27% from a wine distributor. 22)
Overhead is 37% of cost and profit is 51% of cost. For how much should the item be retailed?
A) $75.80
B) $159.78
C) $211.35
D) $197.62
E) none of the above

23) Wayne's Pet Supplies sells dog food for $84.50 per 10-kg bag. The markup is 62% of cost. How 23)
much does the store pay for this bag of dog food?
A) $52.16 B) $114.19 C) $222.37 D) $224.74 E) $485.53

24) A data storage device that cost $20.25 was sold for $79.99. Calculate the rate of mark-up based on 24)
cost price.
A) 75.32% B) 295.01% C) 25.32% D) 395.01% E) 74.68%

25) An article that costs $542.50 was marked up to reflect 30% of the selling price. Calculate the selling 25)
price.
A) $379.75 B) $335.00 C) $775.00 D) $162.75 E) $705.25

26) A calculator that cost $48.50 was sold for $65.96. Calculate the rate of mark-up based on cost price. 26)
A) 73.53% B) 64% C) 36% D) 26.47% E) 17.46%

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 27) Kahn Motors purchased 2008 an off-lease Nissan Altima from the Nissan dealer for $9850 in 2012. 27)
Kahn Motors marked up the price by 20% of the regular selling price. After failing to sell it for 3
months, Kahn Motors decided to sell the car at a markdown of 15%. What is the final sale price of
the car?
A) $10 047 B) $10 465.63 C) $10 368.42 D) $11 820 E) $12 312.50

28) Sonia receives an invoice for $981.50 dated September 30, with terms 5/10, 2/20, n/60. She decides to 28)
pay it in full on October 25. What is the total amount paid to settle the account?
A) $961.87 B) $932.43 C) $981.50 D) $962.25 E) $934.76

29) Hasan receives an invoice for $103.50 dated September 30, with terms 5/10, 2/30, n/60. He decides 29)
to pay it in full on October 25. What is the total amount paid to settle the account?
A) $98.57 B) $101.43 C) $100.40 D) $98.33 E) $103.50

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

30) A 3D printer listed at $3499.00 has a net price of $2599.00. What is the rate of discount? 30)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

31) Brockhampton's merchandise went on sale to celebrate the release of their new album, and the sale 31)
price for a hoodie was $69. When the merchandise is not on sale, they incur overhead costs of $7
and earn a profit of $71. Each hoodie costs $22 to make. What's the rate of markdown?
A) 31.00% B) 25.00% C) 2.82% D) 44.92% E) 68.11%

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Answer Key
Testname: UNTITLED7

1) Amount of Discount = 2149 - 1360 = $789.00

789.00
Rate of discount = = 36.7148%
2149.00
2) Amount of discount = 441 - 205 = $236.00
Rate of discount = 236/441 = .535147 = 53.5147%
3) Amount of discount = 149.99-79.99 = 70.00
70.00
Rate of discount = = .466697 = 46.670%
149.99
4) Amount of discount = 720 - 681.57 = 38.43
38.43
Rate of discount = = 5.3375%
720
5) 33.5% of list = $54.72
.335L = 54.72
L = $163.34
Sale price = 163.34 - 54.72 = $108.62
6) 30% of list = $10
0.30L = 10
L = $33.33
Sale price = 33.33 - 10 = $23.33
7) 114.54 = L(1 - 0.17)
0.83L = 114.54
L = $138.00
8) 0.125L = 156
L = $1248.00
N=L-D
N = 1248 - 156 = $1092.00
9) 0.14L = 70
L = 500
N=L-D
N = 500 - 70 = $430.00
10) 0.47L = 3.57
L = $7.60
N = 7.60 - 3.57 = $4.03
11) N = L(1 - d)
657 = L(0.76)
L = $864.47
List price was $864.47
12) N = L(1 - d)
299 = 0.30L
$996.67 = L
List price was $996.67
1809.14
13) L =
0.875(0.75)0.917
L = 3006.29
14) N = L(1 - 0.178)(1 - 0.086)(1 - 0.063)
231.88 = L(0.822)(0.914)(0.937)
231.88
L=
(0.822)(0.914)(0.937)
L = $329.39
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Answer Key
Testname: UNTITLED7

15) Invoice = $6 200, allow the 3% discount

Amount of reduction = 6200 - 4760 = 1 440
Amount paid = 1440(0.97) = $1396.80
16) M = 181 and represents 22.5% of selling price
181 = 0.225 S
181
S=
0.225
S = $804.44
C = 804.44 - 181.00 = $623.44
17) M = 800 and represents 15% of S
800 = 0.15 S
800
S= = $5 333.33
0.15
C = 5 333.33 - 800.00 = $4 533.33
18) M = 0.52 S
96.00 = 0.52S
S = 184.62
C = 184.62 - 96.00 = $88.62
19) C+ M=S
1345 + 0.27S = S
0.73S = 1345
Regular selling price = $1842.47
20) C = 2123(0.73)(0.8) = 1239.83
S = 1239.83 + 0.23S + 0.129S
0.641S = 1239.83
S = $1934.21
Sale price = 1934.21(0.78) = $1508.69
Total cost = 1239.83 + 0.23(1934.21) = 1239.83 + 444.88 = $1684.70
Operating profit = 1508.69 - 1684.70 = -$176.01 (net loss)
21) B
22) D
23) A
24) B
25) C
26) C
27) B
28) C
29) B
30) Amount of Discount = 3499 - 2599 = $900.00
900
Rate of discount = = 25.7216%
3499
31) A