Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 1
Chapter 8 - Section I - Exercise 17
The Green Thumb Garden Shop purchases automatic lawn sprinklers for $12.50 from the
manufacturer. If a 75% markup based on cost is added, at what retail price should the
sprinklers be marked?
Cost =
Percent markup based on cost =
Selling price = $0.00
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 2
Chapter 8 - Section I - Exercise 15
The Holiday Card Shop purchased stationery for $2.44 per box. A $1.75 markup is added
to the stationery.
a. What is the selling price?
Cost =
Markup =
Selling price =
b. What is the percent markup based on cost? (Round to the nearest tenth.)
Percent markup based on cost =
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 2
Chapter 8 - Section II - Exercise 18
A buyer for a shoe store chain is looking for a line of men's shoes to retail for $79.95. If
the objective is a 55% markup based on selling price, what is the most that the buyer can
pay for the shoes to still get the desired markup?
Selling price =
Markup based on selling price =
Cost =
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 2
Chapter 8 - Section III - Exercise 19
In February, Golf World, a retail shop, purchased golf clubs for $453.50 per set. The original
markup was 35% based on selling price. In April, the shop took a 20% markdown by having a
special sale. After 2 weeks, the sale was over and the clubs were marked up 10%. In June, it
offered a storewide sale of 15% off all merchandise, and in September, a final 10% markdown
was taken on the clubs. What was the final selling price of the golf clubs?
Note: Find the results of each markup or markdown. Use Excel's ROUND function
to make certain that each price is rounded to the nearest cent before it is used in the
next calculation. (Remember: Even though prices are displayed in dollars and
cents, the value that Excel retains for a cell may be a number with many
decimal places. If not rounded, these values may accumulate to cause minor
inaccuracies in the results following multiple calculations.)
Original cost =
Original markup (% based on selling price) =
Selling price after original markup =
Markdown #1 (% based on previous selling price) =
Selling price after markdown #1 =
Markup #2 (% based on previous selling price) =
Selling price after markup #2 =
Markdown #2 (% based on previous selling price) =
Selling price after markdown #2 =
Final Markdown (% based on previous selling price) =
Final selling price =
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 2
Chapter 8 - Section III - Exercise 22
The Goldenflake Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a spoilage rate
of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on cost?
Number of cheesecakes =
Cost of each cheesecake =
Total cost =
Markup (% based on cost) =
Expected total revenue =
Spoilage rate =
Selling price perishable =
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 3
Chapter 8 - Section II - Exercise 21
A pillow has a cost of $21.50 and a selling price of $51.99.
a. What is the amount of markup on the pillow?
b. What is the percent markup based on cost? (Round your final answer to the nearest tenth.)
c. What is the corresponding percent markup based on selling price?
(Round your final answer to the nearest tenth.)
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 3
Chapter 8 - Section III - Exercise 24
You are the manager of WorldWide Athlete, a chain of six sporting goods shops in your area.
The shops sell 12 racing bikes per week at a retail price of $679.99. Recently, you put the
bikes on sale at $599.99. At the sale price, 15 bikes were sold during the one-week sale.
a. What was your markdown percent on the bikes? (Round to the nearest tenth percent.)
b. What is the percent increase in number of bikes sold each week during the sale?
c. How much more revenue would be earned in six months by permanently selling the bikes
at the lower price, rather than having a one-week sale, each month?
d. As manager of WorldWide, would you recommend this permanent price reduction?
Contemporary Mathematics for Business and Consumers, Third Edition
Robert A. Brechner
Copyright © 2003 Thomson/South-Western
Level 3
Chapter 8 - Assessment Test - Exercise 14
The Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked
chicken dinners were made at a cost of $3.50 each. A 10% rate of spoilage is anticipated.
a. At what price should the dinners be sold to achieve a 60% markup based on selling price?
b. If Epicure offers a $1.00-off coupon in a newspaper advertisement, what markdown percent
does the coupon represent? (Round your answer to the nearest tenth.)
