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Chapter 17 |
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Here are extra math problems on pricing. The answers appear at the end of this file.
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1. A retailer can sell 75 printers per month at a price of $200 each or 250 printers per month at a price of $175 each. What is the elasticity of demand (expressed as a positive number)? |
a. 0.40 |
| b. 1.00 | |
| c. 1.65 | |
| d. 8.08 |
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2. If the retailer in problem 1 can sell 200 printers at $155, what is the price elasticity of demand (expressed as a positive number) between the prices of $175 and $155? |
a. 0.48 |
| b. 1.83 | |
| c. 2.44 | |
| d. 2.56 |
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3. A men's specialty shop uses a markup of 45 percent at retail for branded shirts. What is the markup equivalent at cost? |
a. 45% |
| b. 55% | |
| c. 82% | |
| d. 122% |
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4. A ladies' specialty shop buys merchandise for $15 and sells it for $25. What is the markup at retail? |
a. 40% |
| b. 60% | |
| c. 100% | |
| d. 150% |
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5. A bookstore buys books for $8 and sells them for $10. What is the markup at retail? |
a. 20% |
| b. 80% | |
| c. 120% | |
| d. 180% |
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6. A retailer purchases appliances for $10 and desires a 40 percent markup at retail. What should the retail price be? |
a. $11.70 |
| b. $13.00 | |
| c. $14.28 | |
| d. $16.67 |
| 7. A retailer purchases milk for $1.00 per half gallon and seeks a 30 percent markup at retail. What should the retail price be? | a. $1.30 |
| b. $1.43 | |
| c. $1.65 | |
| d. $2.86 |
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8. A belt shop requires a minimum markup of 40 percent at retail on leather belts. If the store owner feels that a line of leather belts should retail for $25.00 each, what is the maximum price he or she will pay per belt? |
a. $10.00 |
| b. $15.00 | |
| c. $16.00 | |
| d. $17.42 |
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9. The belt retailer noted in problem 8 sells plastic belts for $10 and seeks a 25 percent markup at retail. What is the maximum price he or she will pay per belt? |
a. $5.00 |
| b. $6.00 | |
| c. $7.50 | |
| d. $9.00 |
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10. A retailer has purchased a line of sports jackets for $85 each. The selling price is $125 per jacket. What is the markup at retail? |
a. 32.0% |
| b. 42.0% | |
| c. 53.0% | |
| d. 63.0% |
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11. A retailer has purchased a line of suits for $100 each. The selling price is $175 per suit. What is the markup at retail? |
a. 42.9% |
| b. 57.1% | |
| c. 75.0% | |
| d. 175.0% |
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12. A retailer has net annual sales of $125,000. Retail expenses are $75,000. Net profit is $25,000. Compute the maintained markup at retail. |
a. 20% |
| b. 33% | |
| c. 60% | |
| d. 80% |
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13. A retailer has net annual sales of $2,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail. |
a. 13.0% |
| b. 16.5% | |
| c. 20.0% | |
| d. 33.0% |
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14. If the retailer in problem 13 does not plan for any retail reductions due very strong demand, what is the initial markup? |
a. 13.0% |
| b. 16.5% | |
| c. 20.0% | |
| d. 33.0% |
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15. The retailer in problem 13 has planned retail reductions of $100,000. What is the initial markup? |
a. 33.0% |
| b. 36.2% | |
| c. 41.0% | |
| d. 43.4% |
| 16. If the retailer in problem 13 has planned retail reductions of $600,000, what is the initial markup? | a. 36.2% |
| b. 41.0% | |
| c. 48.5% | |
| d. 63.0% |
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17. A retailer buys merchandise for $20.00 a piece. Half is sold for $25.00 and half for $35.00. What is the maintained markup? |
a. 25.0% |
| b. 33.3% | |
| c. 37.1% | |
| d. 42.8% |
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18. Reclining chairs are reduced from $250 to $140 each. Calculate the off-retail markdown percentage. |
a. 20% |
| b. 25% | |
| c. 44% | |
| d. 60% |
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19. A home furnishings retailer has additional markups totaling $850 on a line of table lamps. Net sales of the lamps equal $8,000. Compute the additional markup percentage. |
a. 7.5% |
| b. 8.1% | |
| c. 10.6% | |
| d. 16.1% |
| 20. A home furnishings retailer plans to sell a lamp with a cost of $100 at an original retail price of $200. The firm expects to sell 200 lamps over the next year. How many units would the retailer have to sell if he reduces the price to $175 and still earn the same profit? | a. 225 |
| b. 250 | |
| c. 267 | |
| d. 300 |
ANSWERS:
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