Mathematics with Business Applications

Chapter 15:

Practice Test


1.	A customer places a special order through Keystone Furniture Store. The list price in the manufacturer's catalog is $1,600. Keystone Furniture receives a 35 percent trade discount. What is the net price for the furniture order?
		A)	$560.00
		B)	$1,040.00
		C)	$1,535.00
		D)	$1,565.00


2.	The list price of a sewing machine is $495.00. A fabric store which also sells sewing machines receives a 40 percent discount. What is the net price of the module using the complement method?
		A)	$198.00
		B)	$297.00
		C)	$435.00
		D)	$455.00


3.	Mega-Mulch shows a list price of $18 per cubic yard of pine mulch. The net price to the retailer is $10 per cubic yard. What is the trade-discount rate?
		A)	44.4%
		B)	55.5%
		C)	80.0%
		D)	180.0%


4.	Chain-Sawz is discontinuing its lower-end model chain saw, which is priced at $219. Chain-Sawz is offering a chain discount on the saw of 20 percent less 10 percent, also written as 20/10. What is the final net price of the saw?
		A)	$4.38
		B)	$65.70
		C)	$153.33
		D)	$157.68


5.	LawnTender manufactures weed wackers, which are priced at $99. A new model is ready for production, so the old model will be discontinued. Using the complement method of chain discounts, find the net price of the old model weed wacker with a chain discount of 25 percent less 15 percent, also written as 25/15.
		A)	$3.71
		B)	$39.60
		C)	$59.40
		D)	$63.11


6.	Color Your World received an invoice for 144 gallons of paint dated July 7. The terms on the invoice read "2/10, net 30." What is the last date to pay the invoice?
		A)	July 17
		B)	July 31
		C)	August 6
		D)	August 7


7.	Kerri's Market received an invoice from Anna's Bakery dated August 27. The terms are 5/10 EOM. What is the last day to pay the invoice?
		A)	September 1
		B)	September 6
		C)	September 10
		D)	September 30


8.	A customer orders carpeting from the Rug Warehouse. The list price in the manufacturer's catalog is $1,100. Rug Warehouse receives a 25 percent trade discount. What is the net price for the carpeting?
		A)	$825.00
		B)	$1,000.00
		C)	$1,025.00
		D)	$1,075.00


9.	ZAP Electronics produces cellular phone model M-600, which is priced at $59. An upgraded model is ready for production, so the M-600 will be discontinued. ZAP Electronics is offering a chain discount on the M-600 of 20 percent less 15 percent, also written as 20/15. What is the final net price of the M-600?
		A)	$20.65
		B)	$40.12
		C)	$57.25
		D)	$97.35


10.	Bert's Books received an invoice dated May 10 for a shipment of books. The terms on the invoice read "2/10, net 30." What is the last day the discount can be taken?
		A)	May 2
		B)	May 12
		C)	May 20
		D)	May 30