4) The Exiter Exchange Company received an invoice dated September 20 for $16,000 less 25%, 20% terms 5/10, 2/30, n/60. Exiter made a payment on September 30 to reduce the debt to $5000 and a payment on October 20 to reduce the debt by $3000. (10 marks)

a) What amount is the original balance that the company must pay (hint: it is not $16,000). What amount must Exiter remit to pay the balance of the debt at the end of the credit period?

b) What is the total amount paid by Exiter?

5)A kitchen set cost the dealer $1800 less 37.5%, 18% carries a price tag with a regular selling price at a markup of 120% of cost. For quick sale, the kitchen set was marked down 40%. (8 marks)

a) What was the sale price?

b) What rate of markup based on the cost was realized?

6) Marks machinery lists a log splitter at $1860 less 40%, 15%. To meet competition, Marks wants to reduce its net price to $922.25. What additional percent discount must Marks allow? (4 marks)

7) A merchant realizes a markup of $42 by selling an item at a markup of 37.5% of cost. The merchants overhead expenses are 17.5% of the regular selling price. At a promotional sale, the item was reduced in price to $121.66. (8 marks)

a) What is the regular selling price?

b) What is the rate of markup based on the regular selling price?

c) What is the rate of markdown?

d) What is the profit or loss during the promotional sale?

8) A clothing store buys shorts for $24 less 40% for buying over 50 pairs, and less a further 16 2/3%for buying last years style. The shorts are marked up to cover overhead expenses of 25% of cost and a profit of 33 1/3% of cost. (8 marks)

a) What is the regular selling price of the shorts (assume they buy more than 50 pairs and last years style)?

b) What is the maximum amount of markdown to break-even?

c) What is the rate of markdown if the shorts are sold at the break-even price?