Question 7:

A tire dealer bought tires from a wholesaler at $125.00 dollars each and sold the tires at a mark-up of 32% of cost. (5 marks)

a) Calculate the selling price of the tires. =$165

b) Calculate the rate of markup based on the selling price. =

Question 8:

Christine's pet shop buys cat litter for $14.00 less 18% per bag. The store's overhead is 45% of cost and the owner requires a profit of 25 % of cost. (5 marks)

a) For how much should a bag be sold?

b) Calculate the amount of markup.

Question 9:

A gross profit of $950.00 is made on a sale of services. If the gross profit is 16% based on the selling price, what was the cost? (3 marks)

Question 10:

An appliance store sells electric kettles at a markup of 23.6% of the selling price. The store's margin on a particular model is $7.78. (6 marks)

a) For how much does the store sell the kettles?

b) What was the cost of kettles to the store?

c) What is the percent markup based on cost?

Question 11:

A bike shop reduces the price of a bike for quick sale from $475.00 to $425.00. Compute the markdown correct to the nearest of 1% .(3 marks)

Question 12:

An item that cost the dealer $2700.00 less 12.5%, 11.65% carries a price tag at a markup of 60% based on cost. For quick sale the item was reduced 25%. What was the sale price? (4 marks)

Question 13:

A retail store realizes a gross profit of $59.31 if it sells an article at a margin of 27% of the selling price. (10 marks)

a) What is the regular selling price?

b) What is the cost?

c) What is the rate of markup based on cost?

d) If overhead is 21% of cost, what is the break-even price?

e) If the article is sold at a markdown of 25%, what is the operating profit or loss?