Business Math: Ch. 8 Homework

Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 100 cookies. What should Angie price each cookie? (Round your answer to the nearest cent.)

Price per cookie $ 3.56

Nissan Appliances bought two dozen camcorders at a cost of $4,788. The markup on the camcorders is 25% of the selling price. What was the original selling price of each camcorder?

Selling price $266

Cecil Green sells golf hats. He knows that most people will not pay more than $20 for a golf hat. Cecil needs a 40% markup on cost. What should Cecil pay for his golf hats? (Round your answer to the nearest cent.)

Cecil pays $14.29

At a local Bed and Bath Superstore, the manager, Jill Roe, knows her customers will pay no more than $300 for a bedspread. Jill wants a 35% markup on selling price. What is the most that Jill can pay for a bedspread?

Maximum amount $195

Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on cost instead of on selling price. What is Misu's cost? (Round your answer to the nearest cent.)

Misu's cost $92.31

Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu wants a 30% markup on selling price. What is the most that Misu can pay for a comforter?

Misu's payment $84

Working off an 18% margin, with markups based on cost, the Food Co-op Club boasts that it has 5,000 members and a 200% increase in sales. The markup is 36% based on cost. What would be its percent markup if selling price were the base? (Round your answer to the nearest hundredth percent.)

Percent Markup 26.47%

John's Smoothie Stand at Utah's Wasatch County's Demolition Derby sells bananas. If John bought 50 lbs. of bananas at $.23 per pound expecting 10% to spoil, how should he price his bananas to achieve 57% on selling price? (Round your answer to the nearest cent.)

Price $0.59

Arley's Bakery makes fat-free cookies that cost $1.50 each. Arley expects 15% of the cookies to fall apart and be discarded. Arley wants a 45% markup on cost and produces 200 cookies. What should Arley price each cookie? (Round your answer to the nearest cent.)

Price per cookie $2.56

Bari Jay, a gown manufacturer, received an order for prom dresses from China. Her cost is $35 a gown. If her markup based on selling price is 79%, what is the selling price of each gown? (Round your answer to the nearest cent.)

Selling price $ 166.67

Macy's was selling Calvin Klein jean shirts that were originally priced at $58.00 for $8.70. a. What was the amount of the markdown? (Round your answer to the nearest cent.) b. Based on the selling price, what is the percent markdown?

a. Amount of Markdown $49.30 b. Percent markdown 85%

An Apple Computer store sells computers for $1,258.60. Assuming the computers cost $10,788 per dozen. a. Find the dollar markup for each computer. (Round your answer to the nearest cent.) b. Find the percent markup on cost for each computer. c. Find the percent markup on selling price for each computer. (Round your answer to the nearest hundredth percent.)

a. Dollar markup $359.60 b. Percent markup 40% c. Percent markup 28.57%

Jim Abbott purchased a $60,000 recreational vehicle (RV) with a 40 percent markup on selling price. a. What was the amount of the dealer's markup? b. What was the dealer's original cost?

a. Markup amount $24,000 b. Original cost $36,000

Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost." a. What is the equivalent rate of percent markup on cost compared to the 30% markup on selling price? (Round your answer to the nearest hundredth percent.) b. Is this a wise marketing decision?

a. Rate of percent 42.86% b. No

On July 8, 2013, Leon's Kitchen Hut bought a set of pots with a $120 list price from Lambert Manufacturing. Leon's receives a 25% trade discount. Terms of the sale were 2/10, n/30. On July 14, Leon's sent a check to Lambert for the pots. Leon's expenses are 20% of the selling price. Leon's must also make a profit of 15% of the selling price. A competitor marked down the same set of pots 30%. Assume Leon's reduces its selling price by 30%. a. What is the sale price at Kitchen Hut? (Round your answer to the nearest cent.) b. What was the operating profit or loss? (Input the amount as a positive value. Round your answer to the nearest cent.)

a. Sale price $94.98 b. Operating loss $20.35