Name:______

Small Business Objective 9.0 Retest

1.  Calculate the discount amounts on a purchase of $4550.00 with a trade discount of 25/15/5. (3 Answers)

2.  Calculate the discount amounts on a purchase of $5875.25 with a trade discount of 45/35/25. (3 Answers)

3.  A store received a shipment of merchandise for $500.00. The invoice is dated May 15 and shows the terms 3/10, Net/30.

  1. When must payment be made in order to receive the discount?
  2. What amount do you owe if you take the discount?
  3. What is the latest date for a full payment to be made?

4.  Merchandise totaling $9,386.00 was delivered to a wholesaler on June 22. The invoice is dated June 9 and has terms of 3/15, net/60, ROG.

  1. When must payment be made in order to receive the discount?
  2. What amount do you owe if you take the discount?
  3. What is the latest date for full payment?

5.  A manufacturer received an office supply order for $2,782.00 today. The invoice is dated December 24 and has terms of 1/15, net/30, EOM.

  1. When must payment be made in order to receive the discount?
  2. What amount do you owe if you take the discount?
  3. What is the latest date for full payment?

6.  A business owner has received merchandise totaling $3,525.00. The invoice is dated January 16 and the terms are 4/15, net/45, March 1.

  1. When must payments be made in order to receive the discount?
  2. What amount do you owe if you take the discount?
  3. What is the latest day for full payment?

7.  Calculate dollar markup:

  1. Retail price= $35.99, Cost= $19.45
  2. Retail price= $109.52 Cost= $46.15
  3. Retail price= $1.89 Cost= $0.89

8.  Calculate Cost:

  1. Retail price= $20.00 Markup=$10.00
  2. Retail price= $124.00 Markup= $54.00
  3. Retail price= $52.00 Markup= $22.50

9.  Calculate markdown in dollars:

  1. Original selling price= $99.99, Markdown= 33%
  2. Original selling price= $456.00, Markdown= 25%
  3. Original selling price= $692.18, Markdown= 50%

10.  A cash discount stated as “2/10, net 30, 60X” has

  1. Advanced dating
  2. End-of-month dating
  3. Extra dating
  4. Ordinary dating

Extra Credit:

1.  What does EOM stand for?______

2.  What does ROG stand for?______

3.  What is the formula for calculating retail price?

______+ ______= ______