The Mathematics of Money

(Darren Dugan) #1

  1. OldTyme Digital Sales prices laptop computers with a 18% markup based on selling price. Determine the retail price
    and gross profi t for a laptop that cost OldTyme $449.38.

  2. Kelly’s plumbing supply business uses a 35% markup based on selling price. Determine the selling price and gross profi t
    on piping that cost $47.03.


D. Grab Bag



  1. Find the retail price of an item whose wholesale cost is $41.06 if the markup based on selling price is 32.5%.

  2. In 2007 AnyCorp had sales totaling $179,303,925. Its total cost for the goods sold was $122,094,008. Expenses
    totaled $48,033,033. Determine the gross profi t margin and net profi t margin.

  3. A rare stamp dealer had a gross profi t margin of 19.3% this year. His net profi t margin was 7.1%. Sales totaled
    $408,055. Determine the gross profi t and net profi t.

  4. I own a greenhouse business. The gross profi t margin last year was 41.5%. Expenses as a percent of sales came to
    43.1%. What was my net profi t margin for this business?

  5. A hardware store sold a ratchet set for $19.97. Its cost was $12.43. Determine the gross profi t margin on this
    sale.

  6. A cell phone store sold a headset for $12.99 that cost the store $3.17. What was the gross profi t? What was the gross
    profi t margin?

  7. Find the net profi t margin for a business if the gross profi t margin is 17.5% and expenses are 9.2% of sales.

  8. A grocer uses a 9.5% markup based on selling price for produce. The grocer’s cost for organic carrots is $1.18 per
    pound. How much will he charge for 1 pound of organic carrots?

  9. Canalside Tapas’ manager is projecting that sales next year will total $575,000 and the cost of the goods sold will
    amount to $280,000. What is the largest amount that expenses can total and still give the business a positive net profi t
    margin?

  10. An appliance dealer had expenses of $117,502 on sales of $782,035 last year. If she allocates overhead expenses
    proportionately based on selling price, what would be the overhead attributed to a freezer that she sold for
    $449.99?


350 Chapter 8 Mathematics of Pricing

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