In-Class Practice Test Chapters 07-08

Word Problem 7-22

A model NASCAR race car lists for $70.24 with a trade discount of 20%. What is the net price of the car? (Answer to nearest cent.)
$ ______

Word Problem 7-39

Vail Ski Shop shop received a $1,211 invoice dated July 8 with 2/10, 1/15, n/60 terms. On July 22, Vail sent a $507 partial payment. What credit should Vail receive? What is Vail's outstanding balance?

Vail's credit is $ ______, to the nearest cent.

The outstanding balance is $ ______, to the nearest cent.

Word Problem 7-30

Royal Furniture bought a sofa for $500. The sofa had a $1,510 list price. What was the trade discount rate that Royal received?

Trade Discount Rate ______%, to the nearest hundredth percent.

Drill Problem 8-3

Solve for cost (round to the nearest cent)

The selling price of office furniture at Staples is $6,960;

The percent markup on cost is 38%.

The actual cost was $ ______, to the nearest cent.

Word Problem 8-18

Chin Yov, store manager for Best Buy, does not know how to price a GE freezer that cost the store $720. Chin knows his boss wants a 38% markup on cost. Help Chin price the freezer.

Selling price $ ______, to the nearest cent

Word Problem 8-20

Macy’s was selling Calvin Klein jean shirts that were originally priced at $62.95 for $9.73. (a) What was the amount of the markdown? (Round your answer to 2 decimal places) (b) What is the percent markdown? (Round answer to the nearest whole number.)
a. The amount of markdown is $ ______.
b. The percentage markdown is ______%.

Word Problem 8-17

Matthew Kaminsky bought an old Walter Lantz Woody Woodpecker oil painting for $14,000. He plans to resell it on eBay for $17,000. What are the dollar markup and percent markup on cost? (Round answers to the nearest whole number.)
The dollar markup is $ ______. The percentage markup is ______%.

Word Problem 7-32

Bally Manufacturing sent Intel Corporation an invoice for machinery with a/an $24,700 list price. Bally dated the invoice July 28 with 5/10 EOM terms. Intel receives a 45% trade discount. Intel pays the invoice on August 2.
What does Intel pay Bally? $ ______

Word Problem 7-29

Macy of New York sold Marriott of Chicago office equipment with a $8,000 list price. Sale terms were : 5/10, n/30 FOB New York. Macy agreed to prepay the $80 freight. Marriott pays the invoice within the discount period.

Marriott pays Macy $ ______.
Word Problem 7-27

Maplewood Supply received a $6,250 invoice dated 4/15/06. The $6,250 included $240 freight. Terms were 5/10, 4/30, n/60.
(a)
If Maplewood pays the invoice on April 27, what will it pay?

$ ______
(b)
If Maplewood pays the invoice on May 21, what will it pay?

$ ______

Word Problem 8-37

An Apple Computer Center sells computers for $1,355.99. Assuming the computers cost $11,868 per dozen, find the following for each computer.

(a) The dollar markup: $ ______, to the nearest cent.

(b) The percent markup on cost: ______%, to the nearest hundredth percent.

Word Problem 7-37

Borders.com paid $78.58 net price for each calculus textbook. The publisher offered a 14% trade discount. What was the publisher’s list price?

List price $ ______, to the nearest cent

Word Problem 7-44

Majestic Manufacturing sold Jordans Furniture a living room set for an $8,600 list price with a 30% trade discount. The $350 freight (FOB shipping point) was not part of the list price. Terms were 4/10, n/30 ROG. The invoice date was May 28. Jordans received the goods on July 17 and paid the invoice on July 22. What was the final price (include cost of freight) of the living room set?
The final cost of the living room set is $ ______.
Word Problem 8-32

At a local Bed and Bath Superstore, the manager, Jill Roe, knows her customers will pay no more than $380 for a bedspread. Jill wants a 40% markup on selling price.

What is the most that Jill can pay for a bedspread?

$ ______

Word Problem 8-27

Angie’s Bake Shop makes birthday chocolate chip cookies that cost $1.75 each. Angie expects that 8% of the cookies will crack and be discarded. Angie wants a 35% markup on cost and produces 300 cookies. What should Angie price each cookie?

Cookies should sell for $ ______, to the nearest cent.

Drill Problem 8-9

Solve for the selling price of a complete set of pots and pans at Wal-Mart if the actual cost is $73.55 and there is a 34% markup on selling price.

Selling price $ ______, to the nearest cent

Word Problem 7-25

A manufacturer of skateboards offered a 9/6/1 chain discount to many customers. Bob’s Sporting Goods ordered 40 skateboards for a total $675 list price.

The net price for the skateboards was $ ______.
The trade discount was $ ______.