360 Chapter 8 Mathematics of Pricing
- An invoice totaling $939.06 (excluding shipping charges) dated September 30, 2008, is marked “4/10, 2/15, n/45
ROG.” Shipping charges are $24.00. The shipment arrived on October 16, 2008.
a. If the bill is paid on October 18, 2008, fi nd the total due.
b. If the bill is paid on November 7, 2008, fi nd the total due.
c. If the bill is paid on November 30, 2008, fi nd the total due.
d. What is the last day the bill can be paid before it is considered late?- A seed packet wholesaler sells fl ower packets that list for $1.79 and vegetable packets that list for $1.39. They offer a
24% trade discount and charge $45 shipping per order.
A garden store placed an order for 850 fl ower seed packets and 2,400 vegetable seed packets. The invoice was dated
February 17, 2007, and the shipment arrived February 24, 2007, and was marked “2/15, n/30 EOM. 5% surcharge for
late payment.”
a. Calculate the total due, assuming payment is made on March 1, 2007.
b. Calculate the total due, assuming payment is made on March 17, 2007.
c. Calculate the total due, assuming payment is made on March 29, 2007.
D. Grab Bag
- Find the single discount equivalent to successive discounts of 30%, 20%, and 15%.
- Find the gross profi t margin and the percent markup based on cost for a product sold at list price, assuming a trade
discount of 25%. - Northbrand 20-inch fl at panel TVs list for $349.95, and the company offers a 17% trade discount. Southbrand, a
competing company, offers a comparable television with the same list price, but with a 24% trade discount. Bigg Retail
Stores tells Northbrand that it needs to match Southbrand’s price, or else it risks losing the retailer’s business. What
additional discount does Northbrand need to offer to do this? - A jar of gourmet organic applesauce was originally priced at $6.99. This product did not sell well, so the grocer marked
it down by 20%. Still, it did not sell well, so the grocer put it on clearance and marked the price down an additional
70%. Find the clearance price. - A cheese company sells three different types of brick cheese. Sharp cheddar costs $4.79 per pound, mild cheddar
costs $3.99 per pound, and pepper jack costs $4.35 per pound. They do not charge shipping for orders over
500 pounds.
A specialty food market placed an order for 700 pounds of sharp cheddar, 500 pounds of mild cheddar, and 350
pounds of pepper jack. The invoice was dated August 3, 2007, and the shipment arrived August 5, 2007, marked
“1/10, n/30. 2% per month surcharge for late payment.”
a. Calculate the total due, assuming payment is made on August 10, 2007.
b. Calculate the total due, assuming payment is made on August 29, 2007.