FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Markups and Markdowns: Perishables and Breakeven Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Gross profit is net sales minus the cost of bringing merchandise into the store.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A computer sells for $995, which is marked up 35% of the selling price. The cost of the computer is:

A) $1,343.25
B) $1,433.52
C) $1,350.77
D) $1,530.77
E) None of these

F) C) and D)
G) A) and E)

Correct Answer

verified

E

Question 3

True/False

Review LaterAdd Note

If the selling price and percent markup on selling price are given, the actual cost can be calculated.

Francis's Bakeshop makes cupcakes that cost $.95 each. Francis knows that 20% of the cupcakes will spoil. Assume Francis wants a 35% markup on cost and produces 60 cupcakes. What should Francis charge for each cupcake? Round to the nearest cent.

Cost is equal to the selling price divided by (1 + markup percent on cost) when markup is based on cost.

Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?

Calculate the total cost, total sales, and selling price per unit. A. $32.50 (50 × $.65) B. $43.88 C. $1.10

Straub's Bakery makes 200 Danish cakes that cost $2.70 each. Straub's needs a 66% markup on cost and normally discards 10% of what it makes. At what price should Straub's sell the Danish cakes?

When markups are based on the selling price, the:

The markdown percent is the amount of markdown divided by the new sale price.

Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is:

Markup is:

A local True Value Hardware Store marks its goods up 38% on cost. If a snow blower cost True Value $400, the selling price would be:

A video game sells at Arnolds for $199.95. Arnolds marks the game up at 30% of the selling price. What was the cost of the video game to Arnolds?

When markup is based on selling price, the cost is the base.

Calculate the total cost, total sales, and selling price per unit.

A wooden duck with a regular selling price of $125.99 is marked down to $79.99. The percent of markdown is:

Pat Maninan, a customer of Brown Co., will pay $400 for a new kitchen table. Brown has a 55% markup on the selling price. What is the most Brown can pay for this kitchen table?

Bill's Hardware marks up snow blowers $130 and sells them for $485. Markup is on cost. What are the cost and percent markup to the nearest hundredth percent?

(1 + markup percent on cost) × cost equals: