Question

34.

a)

A hardware store featured a new tool that retailed for, $19.99. The buyer purchased 200 pieces. Unfortunately, the item did not sell well, and after three months, 115 pieces remained. The buyer marked them to $14.99 and 23 more pieces were sold. A second markdown was taken, the item was marked at $11.99 and all remaining pieces were sold. Determine the total markdown dollars.

	a.	$851.00
	b.	$838.05
	c.	$863.05
	d.	$836.43
	e.	$839.67
	f.	None of the above.

b)

A bill is for $6100.00 with terms of 4/10-60X cash discount. How many days does the merchant have to pay the bill and take advantage of the discount?

	a.	30 days
	b.	20 days
	c.	70 days
	d.	60 days
	e.	10 days
	f.	None of the above.

c)

A buyer for a candle gift shop purchased an assortment of candles:

• 160 jar candles (22 oz) at a cost of $6.00 each
• 180 jar candles (17.5 oz) at a cost of $5.00 each
• 170 jar candles (14.5 oz) at a cost of $4.00 each
• 160 jar candles (11 oz) at a cost of $3.00 each

She plans to sell all of the candles at the same retail price. What unit retail will result in a 54% markup percentage?

	a.	$13.34
	b.	$7.19
	c.	$9.80
	d.	$13.67
	e.	$12.78
	f.	None of the above.

Answer 1

a)	Cost of the new tool			19.99
	Price went down to			14.99
	Price after 1st marked down			5	(19.99-14.99)
	Cost after first mark down			14.99
	Price went down to			11.99
	Price after 2nd marked down			3	(14.99-11.99)
	Units	Price	Mark down
	115	5	$ 575.00
	92	3	$ 276.00
	(115-23)
	Total		$ 851.00
	The correct answer is a. $ 851.00
b)	4/10 net 60 cash discount implies that the trade credit given to the vendor in which he can opt to either 4% discount if paid in 10 days or pay the full amount in 60 days
	The correct answer is e. 10 days
c)	Jars	Cost
	160	6	960
	180	5	900
	170	4	680
	160	3	480
Total	670		3020
	Mark up @ 54%		1630.8	(3020*54%)
	Sales		4650.8	(3020+1630.8)
	Selling price per unit			4650.8/ total units
				4650.8/ 670
				$6.94 per unit
	The correct answer is f. None of the above