1. A store priced a textbook at $126.75 using a markup of 34% of cost. What was the cost of the book?
What is the markup as a percent of selling price?
2. The Tea Spot sells stove top kettles at a markup of 15% of the selling price. The store’s margin on a particular model is $6.87.

What is the selling price of the kettles?

What is the cost of buying the kettles?

3. What is the rate of markup based on cost? An eyeware shop sells wrap around sunglasses for $86. If they wanted to lower the price to $75, what rate of markdown would they have to offer?

4. The Music Box paid $13.95 for a DVD. Expenses are 17% of the selling price and the required profit is 14% of selling price. During a weekend sale, the DVD was marked down 10%.

What was the regular selling price?

What was the sale price?

What was the operating profit or loss?

5. Harry’s Hardware realizes a markup of $34.50 if it sells an article at a markup of 40% of the selling price.

What is the regular selling price?

What is the cost?

What is the rate of markup based on cost?

If overhead expenses are 27% of cost, what is the break-even price?

What is the operating profit or loss, if the article is sold for $75?

6. Autobots purchases car stereos for $225 less 331⁄3%. The store operates at a normal markup of 35% of regular selling price. The owner marks all merchandise with new regular selling prices so that the store can offer a 18 2⁄3% discount while keeping the same gross profit. a) What is the original regular selling price? b) What is the new selling price?

A patio table set that cost a dealer$330 less 45%, 25% is markedup 160% of cost. For quick sale, the table set was reduced 35%.

What is the regular selling price?

What is the sale price?

What is the rate of markup based on cost realized during the sale?

Grin & Bare It buys briefs for $15 less 15%, 10%. The briefs are priced at a regular selling price to cover expenses of 22% of regular selling price and a profit of 15% of regular selling price. For a special weekend sale, briefs were marked down 20%.

What was the operating profit or loss on briefs sold during the weekend sale?

What rate of markup was realized based on cost?

Ming Wu bought knifesets for $170 less 40%, 162⁄3%, 10%. The store’s

overhead is 45% of regular selling price and the profit required is 21.25% of regular selling price

What is the break-even price?

What is the maximum rate of markdown the store can offer to break even?

What is the realized rate of markup based on cost if the knife sets are sold

at the break-even price?

10. A shoe store bought 225 pairs of shoes for $15750. Twenty-five pairs were sold

at a markup of 150% of cost and 175 pairs at a markup of 75% of cost; 10 pairs were sold during a clearance sale for $80 each and the remaining shoes were disposed of at 20% below cost. Assume all pairs of shoes had the same cost.

a. What was the cost of shoes?
b. What was the amount of markup realized on the purchase? c. What was the percent markup based on selling price?