Ten problems are below. Be sure to scroll down to all 10, and show all calculations so I can ensure you understand or help if you miss it. PROBLEM 1 You are the buyer of steel plate for a large steel distributor. You are looking for a supplier of steel plate that your salespeople could sell in the marketplace for $545 per metric ton. If your objective is a 40% mark-up based on selling price, what is the most that you can pay for the steel per ton to still get the desired mark-up? PROBLEM 2 City Electrical Distributor is looking for a new line of 60 watt solar panels to retail for $200. If management wants a 35% markup based on selling price, what is the most that can be paid for a solar panel to still get the desired markup? PROBLEM 3 ABC Medical, a medical distributor of hospital beds, purchases its beds from a manufacturer for $1800. If the distributor's policy is to mark up all merchandise 30% based on selling price, what would be the selling price of the beds to hospitals? PROBLEM 4 Crystal Auto Supply purchases water pumps from the distributor for $28.50 each. If Crystal adds a 70% mark-up based on cost, at what retail price should the pumps be sold? PROBLEM 5 An electrical switch has a cost of $55.00 and a selling price of $119. a. What is the amount of markup on the switch? b. What is the percent markup based on cost? (Round your final answer to the nearest tenth.) c. What is the corresponding percent markup based on selling price? (Round your answer to the nearest tenth). PROBLEM 6 A distributor of airplane components purchases wiring systems for $45.00 each. A $20.50 mark-up is added to the systems. a. What is the selling price? b. What is the percent markup based on cost? c. What is the percent markup based on selling price? PROBLEM 7 Medical Supply Inc.sells a spinal screw for $550 to hospitals. If a 45% mark-up based on cost is added, what is the cost of the spinal screw? PROBLEM 8 Legacy Designs places an order for furniture, listing for $80,450 less trade discounts of 10/20. a. What is the net price factor? b. What is the net price of the order? PROBLEM 9 mark-up based on cost, at what retail price should the pumps be sold? PROBLEM 5 An electrical switch has a cost of $55.00 and a selling price of $119. a. What is the amount of markup on the switch? b. What is the percent markup based on cost? (Round your final answer to the nearest tenth.) c. What is the corresponding percent markup based on selling price? (Round your answer to the nearest tenth). PROBLEM 6 A distributor of airplane components purchases wiring systems for $45.00 each. A $20.50 mark-up is added to the systems. a. What is the selling price? b. What is the percent markup based on cost? c. What is the percent markup based on selling price? PROBLEM 7 Medical Supply Inc.sells a spinal screw for $550 to hospitals. If a 45% mark-up based on cost is added, what is the cost of the spinal screw? PROBLEM 8 Legacy Designs places an order for furniture, listing for $80,450 less trade discounts of 10/20. a. What is the net price factor? b. What is the net price of the order? PROBLEM 9 The Speedy Auto Service Center can buy auto parts from Southeast Auto Supply at a series discount of 15/10/5 and from Northwest Auto Supply for 20/10/5. a. Which auto parts supplier offers a better deal to Speedy? (Provide the net price factor for each supplier). b. If Speedy orders $45,000 in parts at list price per month, how much will they save in a month by choosing the lower-priced supplier (versus the alternative)? PROBLEM 10 Midtown Distributor received the following items at a discount of 20/15/5: 10 cases of electrical pressure switches listing at $112.40 per case and 20 cases of temperature switches listing at $153.50 per case. a. What is the total list price of this order? b. What is the amount of the trade discount? c. What is the net price of the order
