Mathematics with Business Applications

Chapter 16:

Practice Test

1.
The Gold Mine purchased 18-carat gold chains for $225.00 each. The Gold Mine sells the gold chains for $399.99 each. What is the markup on each gold chain?
A)$56.25
B)$174.99
C)$177.99
D)$199.99
2.
The Toy Store buys board games for $6.90. It sells the games for $9.99. What is the markup rate based on the selling price?
A)22.4%
B)30.9%
C)44.8%
D)69.1%
3.
Outdoor and More purchases bicycles for $225.00 each. It sells the bicycles for $379.99 each. The owner estimates the overhead expenses to be 35 percent of the selling price of the merchandise. What is the net profit on each bicycle?
A)$21.99
B)$78.75
C)$154.99
D)$133.00
4.
Ed's Appliances sells a washing machine for $349.99. The cost of the washing machine to Ed's Appliances is $209.00. Ed estimates the overhead expenses on the washing machine to be 20 percent of the selling price. What is the net-profit rate based on the selling price of the washing machine?
A)20.3%
B)33.5%
C)47.7%
D)59.7%
5.
Sue's Shoes purchased some boots for $24. Its markup based on selling price is 45 percent. What is the selling price of the boots?
A)$10.80
B)$24.75
C)$43.64
D)$53.33
6.
Out of Bounds sells all-terrain vehicles, snowmobiles, etc. Out of Bounds purchases a snowmobile for $3,990 from the manufacturer. It sells the snowmobile for $7,499. What is the markup rate based on cost?
A)38.21%
B)46.79%
C)53.21%
D)87.94%
7.
Reel Records sells CDs to More than Music for $7.87. Reel Records calculates the suggested retail price and attaches it to each CD. The retail price is computed by marking up the cost to More than Music by 190 percent of the cost. What is the suggested retail price?
A)$4.14
B)$9.82
C)$14.95
D)$41.42
8.
Kathy's Kitchen sells a commercial blender at a regular selling price of $119. For one week, Kathy's Kitchen has marked down the price to $99. What is the markdown rate?
A)8.4%
B)14.7%
C)15.2%
D)16.8%
9.
Bird Fancy purchased bird cages for $17.00 each. Bird Fancy sells the bird cages for for $29.99 each. What is the markup on each bird cage?
A)$4.33
B)$5.66
C)$7.64
D)$12.99
10.
Kerri's Market buys fresh-baked bread for $0.79 a loaf. It sells the bread for $1.19 a loaf. What is the markup rate based on the selling price?
A)33.61%
B)50.60%
C)66.40%
D)150.60%
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