Question: Mr. Small, store manager for Jay’s Appliance, is having a difficult time placing a selling price on a refrigerator that cost $410. Mr. Small knows his boss would like to have a 45 percent markup based on cost. The selling price should be:

Answer: $594.50

Question: Camille Keegan sells lamps for $105.55 that cost her $75.00. Camille’s percent of markup based on the selling price is:

Answer: 28.94 percent

Question: Net income is calculated as:

Answer: Net sales - costs - operating expenses

Question: The markdown percent is the amount of markdown divided by the new sale price

Answer: False

Question: A final selling price may be the result of a series of markdowns (and possibly some markups).

Answer: True

Question: Given a selling price of $8,000 with a cost of $4,500 the amount of markup is:

Answer: $ 3,500

Question: Markup represents an amount needed to cover operating expenses.

Answer: True

Question: If the selling price and percent markup on selling price is given the actual cost can be calculated.

Answer: True

Question: Bob Reed sells a clock for $120.95 that cost him $62.50. Bob’s percent of markup based on the selling price is:

Answer: 48.33 percent

Question: To place a price on perishable items, there is no need to calculate the total cost as well as total selling price of the items.

Answer: False