CHAPTER 7
Hodge Podge
Chapter 8
Hodge Podge
Chapter 10
100
Brooks Dept. Store bought a stereo from a wholesaler with a $1,200 list price and a 28% trade discount. What is the trade discount amount? What is the net price of the stereo?
Trade discount $336; $1,200 × .28 = $336
Net price $864; $1,200 × .72 = $864
Feedback: Multiply the 28% to get the trade discount; then multiply by the complement, 72%, to get the net price.
100
Calculate the End of Discount Period and End of Credit Period.
Jan. 10
Jan. 30
First 10 days of second month that follows the sale
Feedback: Since the date of the invoice is after the 25th, the end of discount period will be the 10th of the second month and the end of credit period will be the 30th day of the second month.
100
Jane Corporation produces fudge bars. Total fixed cost is $55,500. Each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. What is the breakeven point for Jane Corporation?
$30,000
Feedback: $55,500/$1.85 = $30,000.
$4.95 - $3.10 = $1.85
$55,500/$1.85 = $30,000
100
Round to the nearest cent or hundredth percent as needed.
Interest is $405 on a principal balance of $5,000; assuming a 7 month loan what is the rate?
13.89%
Feedback: 13.89% = $405/(5,000 × (7/12)).
100
Allows borrowers to receive interest credit
The U.S. Rule:
200
A local Ford dealership purchased a new Ford Focus from the manufacturer that lists for $22,178. Ford Motor Company offers the dealership an 18% trade discount. Shipping costs totaled $795.00. What did the local dealership pay for the Focus?
$18,980.96
Feedback: $22,178 × .82 = $18,185.96; $18,185.96 + $795 = $18,980.96
200
Al Shelf knows his goods are marked up 36% on cost. If a TV cost Al $280, what would the selling price be?
$380.80
$280 + .36 ($280) = selling price
$280 + $100.80 = $380.80 or $280 × 1.36 = $380.80
Feedback: $280 × 1.36 = $380.80.
200
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?
$139.96 or $139.97 depending on approach
Feedback: $199.95 - $59.99 = $139.96 or $139.97, depending on approach.
200
December 3rd, 2019 6pm
When is our Final Exam?
200
Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:
$88,800
$60,000 × .06 × 8 = $28,800 + $60,000 = $88,800.
300
Calculate the End of Discount Period and End of Credit Period.
Aug. 19 (Aug. 9 + 10 days)
Feedback: Add 10 days to get the end of discount period on August 19; add 30 days to get the end of credit period date to be September
300
Blue Jeans Inc. sells jeans that cost $15.99 for a selling price of $42.95. What is the percent of markup based on cost? (Round to the nearest hundredth percent.)
Feedback: $26.96/$15.99 = 168.61%.
300
Best Buy sells Kindle E-readers for $79.99 that cost the store $16.09. What is the percent markup on cost? (Round to the nearest tenth.)
397.1%
Feedback: $79.99 - $16.09 = $63.90 markup in dollars; $63.90/$16.09 = 3.97141, or 397.1%.
300
The markdown percent is calculated by:
Amount of markdown divided by original selling price
300
Banks and other financial institutions sometimes calculate simple interest based on:
Banker’s rule, ordinary interest
400
Which option yields the highest single equivalent discount?
Feedback: Multiply the complements of each rate times each other to see which option is greater.
400
What is the learning resources we use for this course?
McGraw Hill Connect
400
In downtown Boston, a bakery produces 200 bagels a day at a cost of $.20 each. It is expected that 15% of the bagels will spoil before being sold. Assuming the bakery expects to make a 40% markup on its cost, what should the selling price of each bagel be?
TC = 200 x $.2 = $40
TS = $40+ (.40 x $40) = $56
200 x .15 = 30
200 - 30 = 170
56/170 = $.33
$.33
Feedback: $56/170 = $.33.
400
50 years
How many years is CAC celebrating this year?
400
Federal Reserve banks as well as the federal government like to calculate simple interest based on:
Exact interest
500
Calculate the net price based on the information given below.
$585
$900 × .65 = $585
Feedback: Multiply $900 by 65%.
500
An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is:
$179.40
An Apple iPod sells for $299, which is marked up 40% of the selling price. The cost of the iPod is $179.40. 299 × (1 – .40) = 179.40
500
Blue Jeans Inc. sells jeans that cost $15.99 for a selling price of $42.95. What is the percent of markup based on cost? (Round to the nearest hundredth percent.)
Feedback: $26.96/$15.99 = 168.61%.
500
Jones of Boston borrowed $40,000, on a 90-day 10% note. After 60 days, Jones made an initial payment of $6,000. On day 80, Jones made an additional payment of $7,000. Assuming the U.S. Rule, what is the adjusted balance of the first payment? Use 360 days.
$34,666.67
$40,000 x .10 x 60/360 = $666.67
$6,000 - $666.67 = $5,333.33
Feedback: $40,000 - $5,333.33 = $34,666.67.
500
Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.
$18,146.48
Feedback: $155/(.1025 × (30/360)) = $18,146.34.