Test3reviewbmth1001200

.pdf

School

Humber College**We aren't endorsed by this school

Course

BMTH 100

Subject

Accounting

Date

Jan 14, 2025

Pages

Uploaded by tobiloba84

BMTH100/120REVIEW TEST 3 1 Round all monies to dollars and cents (2 decimal places) after each calculation. Round all percents to two decimal places. 1)A television is listed at $800 less 30%, 10%, 8⅓%a) What is the net price of the television?b) Calculate the single equivalent rate of discount.2)An invoice of $8540 dated November 16 has terms 5/10, 2/30, n/60. Themerchandise was received November 20.a) How much would be paid if the bill was paid on December 5?b) How much would be paid if the bill was paid on November 26?3)The net price of an article is $64.98 after discounts of 20% and 5%. Whatis the list price?4)a) What is the regular selling price of an item purchased for $562.50 if theexpenses are 30% of the regular selling price and the profit is 25% of the regular selling price? b) During a promotional sale, the item was sold at a reduction of 20%.What was the sale price?c) What is the rate of markup based on cost price realized during the sale?d) What is the rate of markup based on selling price realized during thesale? 5)An item costs a retailer $1250 less 30%, 14%. The markup based on cost is33⅓%. The item is marked down by 15% after one month as it remainsunsold.a)What is the sale price?b)What is the amount of the markdown?

BMTH100/120REVIEW TEST 3 2 6)A markup(also sometimes called the "gross profit")of $135.00 is made on a sale. If themarkup (gross profit)was 45% based on selling price, what was the cost?7)Mo’s Appliances bought a washing machine for $275. The markup was 80%of cost. During a sale the washing machine was marked down to $399.Calculate the rate of markdown.8)A store received an invoice dated November 15 with terms 4/10, n/45 for 120dresses at $60.00 less 20%, 10%.a)What was the last day for taking the discount?b)What is the amount of the discount if the invoice is paid before the lastday for the discount?9)Calculate the net price if a discount of 30% amounted to $12.50.10)Complete the following chart.Cost Selling Price Markup Rate of Markup based on Cost Rate of Markup based on Selling Price $240 $60 $96 60% $5.50 25% $84 33⅓% $50 66⅔%

BMTH100/120REVIEW TEST 3 3 11)A discount store buys a stereo for $1500 less 25%. The expenses are 40%of cost and the required profit is 30% of cost. All merchandise is marked sothat the store can advertise a discount of 30% while still maintaining itsregular its regular markup. What is the price marked on the stereo?12)Market research for a new product indicates that the product can be sold for$300 per unit. Variable costs are $120 per unit, fixed costs are $14 400 perperiod and production capacity per period is 250 units.Draw a detailed break-even chart showing total cost, total revenue andfixed costs lines, profit and loss areas and the break-even point.a)Compute the break-even point in units, dollars and as a % of capacity.b)Compute the contribution margin and the contribution rate.c)Compute the break-even volumeas a percent of capacity if the selling priceis reduced to $285per unit.d)Determine the break-even revenueif the fixed costs are increasedto $16 320 and the variable cost per unit is decreased by 10%.

BMTH100/120TEST 3REVIEWRevised F19 3 13) Consider the following break-even chart for a business:a)The line labelled A represents ________________________b)The line labelled B represents ________________________c)The line labelled C represents ________________________d)The region labelled D represents ________________________e)The region labelled E represents ________________________f)The break-even volume (units) is ______________g)The break-even revenue (dollars) is ______________h)The total revenue at 225 units is ____________i)The total cost at 250 units is ____________j)The fixed cost when 280 units are sold is ____________k)The total variable cost at 300 units is ____________l)The profit/loss at 250 units is ____________0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 50 100 150 200 250 300 350 $units ABCED