Preliminary Exam

Solve the following problems.

1. A bookstore priced a textbook Php650 using a mark-up of 40% of cost. What was the
original cost of the book? What percent of the selling price is the mark-up?
2. A ski jacket costs a retailer Php850. The jacket is priced to generate a 25% mark-up on cost.
What is the retail selling price?
3. The list price of a second-hand TV set in a discount store is Php1,650. The item costs
Php1,200. After negotiation with a buyer, the TV set was sold at Php1,500. Compute the rate
of markup based on cost. What is the rate of markdown?
4. A CD shop offered a markdown of 10% during its year-end sale. The record outlet paid
Php200 for one CD and the expenses is 15% of the selling price. To achieve a profit of 12% of
the selling price, what was the regular selling price of one CD? What was the sale price? How
much is the profit or loss?

5. An appliance center sells washing machines at a markup 15% of the selling price. The store’s
mark-up on a certain model is Php300.
a. What is the selling price of the washing machine?
b. What is the original cost of the washing machine?
c. What is the rate of markup based on the cost?
6. Jessica wants to sell the banana cake she baked. She had total expenses of Php120, and
35% of it went to baking expenses. How much should Jessica sell the cake with a goal of
earning a profit of 30% of the cost?
7. David’s Bookstore foresees that people will buy notebooks several days before the start of
a new school year. The cost of the notebook in the store is Php25. Two weeks before the start
of the school year, the store’s rate of markup based on the cost is 8%. One week after the
opening of classes, they decided to put an additional mark-on of 2% to its selling price.
a. What is the selling price?
b. What is the mark-up?
c. What is the additional mark-on?
d. How much is the new selling price after the additional mark-on?
8. An optical shop sells a pair of contact lenses for Php1,200. If they wish to lower its price to
Php900, what rate of markdown should they offer?
5. A sports center sells a pair of running shoes at a markup of 20% of the selling price. Their
mark-up on a specific brand is Php350.
a. How much is the cost of the running shoes?
b. What is the selling price?
c. What is the rate of markup based on the cost?

Identify the following.

9. It is the price at which a commodity is being sold.
10. A reduction in price expressed as a percentage of the original price.
11. An amount paid to purchase a product for sale.
12. The difference in the selling price and the cost price.
13. A fairly increase in a retail product after another increase.
14. Earning this amount is the ultimate goal of any business.
15. A condition wherein the business does not make any profit or loss.