Explore BrainMass
Share

Explore BrainMass

    Managerial accounting: markup, discounts, selling price,cost

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1.Markup is:

    a.selling price + cost
    b.selling price divided by cost
    c.selling price cost
    d.selling price (1 + cost)
    e.None of these

    2.Black and Decker Manufacturing sold a set of saws to True Value Hardware. The list price was $3,800. Black and Decker offered a chain discount of 8/3/1. The net price of the saws is_________.

    a.$3,537.12
    b.$3,537.21
    c.$3,391.12
    d.$3,357.21
    e.None of these

    3.A local Dunkin Donuts makes blueberry muffins that cost $0.69 each. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming this donut shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for______.

    a.$0.90
    b.$0.91
    c.$1.50
    d.$1.06
    e.None of these

    4.Zales bought a tea set for $1,400. Zales wants to markup the set 55% of the selling price. The selling price of the tea set should be_________

    a.$2,030.00
    b.$2,300.00
    c.$3,111.11
    d.$3,111.10
    e.None of these

    5.A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

    a.$15,000
    b.$15,500
    c.$15,625
    e.$2,500
    d.None of these

    6.Amount of trade discount is represented by the ____________.

    a.base
    b.rate
    c.portion
    d.base divided by rate
    e.None of these

    7. J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 F.O.B. Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee pays within the discount period, how much will they pay J.C. Penney?

    a.$11,640.00
    b.$8,544.00
    c.$8,644.00
    d.$11,940.00
    e.None of these

    8.(1 + markup percent on cost) X cost equals_______________.

    a.cost at wholesale
    b.cost at retail
    c.selling price
    d.markup
    e.None of these

    9. Mr. Small, store manager for Jay's Appliance, is having a difficult time placing a selling price on a refrigerator that cost $410. Mr. Small knows his boss would like to have a 45 percent markup based on cost. The selling price should be_________.

    a.$745.45
    b.$754.54
    c.$594.50
    d.$549.50
    e.None of these

    10. Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is_______.

    a.42.62%
    b.46.26%
    c.29.88%
    d.28.9%
    e.None of these

    © BrainMass Inc. brainmass.com October 10, 2019, 12:08 am ad1c9bdddf
    https://brainmass.com/business/management-accounting/managerial-accounting-markup-discounts-selling-price-cost-280059

    Solution Summary

    The solution answers Managerial accounting questions related to markup, discounts, selling price,cost.

    $2.19