Topic Test Answers

Ashley runs a hardware store. She has decided to apply a markdown of 15% to one item in order to draw customers into the store, and she will apply a markup of 10% to three different items, which she hopes the customers will purchase after purchasing the marked-down item. She has chosen four candidates for this process: a power drill with an initial price of $51.49, a ceiling fan with an initial price of $64.79, a miniature circular saw with an initial price of $45.99, and a screwdriver set with an initial price of $37.39. After applying the changes, the total cost of purchasing one of each item is $3.77 more than it was before applying the changes. Which item was marked down?

A desk chair underwent the following changes in price before being removed from the store.22%Markup30%Markup36%Markdown40%Markup18%MarkdownIf the final price of the desk chair was $167.79, what was the original price, to the nearest dollar? Round all dollar values to the nearest cent.

Bloro Appliances is pushing a new model of dishwasher. It costs Bloro $71.22 to put each dishwasher on the sales floor, but they can sell the dishwashers for $285.50 apiece. Bloro has three primary salespeople, each of whom earns a different commission per dishwasher sold. Their sales data for the past six months is shown below.SalespersonSoldCommission/SaleRick114$47.50Carl176$62.75Lee96$51.35In order to stock the dishwashers, Bloro Appliances had to sign a contract which included costs of $15,975. How much profit did Bloro Appliances gain from sales of these dishwashers over the past six months?

Bill owns a company (Bill's Gates) that manufactures fence panels. Bill's Gates had a gross profit margin last quarter of 33%. Which of the following actions would allow Bill to increase his gross profit margin this quarter, assuming he sells the same number of fence panels?

Marcy’s company produces grandfather clocks. Each clock costs them $164 to make, and they can sell a clock for $625. If their annual overhead costs, not counting the cost to produce the clocks, comes to $96,000, how many clocks must Marcy’s company sell each year to break even? Round to the nearest whole clock, if necessary.

Last month, Korey’s Comics had a gross profit of $4,370 and a net income of $3,500. Calculate Korey’s operating expenses for last month.

Last month, Korey’s Comics had a gross profit of $2,385 with a monthly revenue of $3,465. Korey expects similar sales this month, but he would like to build up his in-store browsing selection, and purchases an additional assortment of comic books that costs him $625. The new assortment of comics will not arrive until next month. How does this transaction affect Korey’s gross profit for this month?

Korey is planning to open a comic book store, but has determined that he does not have enough money to cover the cost of opening the store and running the store for the first year. Which of the following is not something Korey should consider to meet his operational costs?

Sam's Swimming Pool Cleaning has a annual net income of $46,900. Sam charges $25 per week for each of his customers for 52 weeks. His annual operating expenses, including labor and supplies, are $48,000. How many customers does Sam's Swimming Pool Cleaning have?

Sam is planning to start a pool cleaning business. If Sam meets his profit goal of $45,000 the first year and expects his annual profits to increase by 5.5% each year for the next 3 years, how much profit does Sam expect to make in his third year of business?

Ashley runs a hardware store. She has decided to apply a markdown of 15% to one item in order to draw customers into the store, and she will apply a markup of 10% to three different items, which she hopes the customers will purchase after purchasing the marked-down item. She has chosen four candidates for this process: a power drill with an initial price of $51.49, a ceiling fan with an initial price of $64.79, a miniature circular saw with an initial price of $45.99, and a screwdriver set with