Level 2
Chapter 8 – Section I – Exercise 11
Alarm clocks cost the manufacturer $56.10 per unit to produce. If a markup of
$29.80 is added to the cost, what is the selling price per clock?
Level 1
Chapter 8 – Section I – Exercise 19
Crystal Auto Supply purchases water pumps from the distributor for $35.40 each.
If Crystal adds a 120% markup based on cost, at what retail price should the
pumps be sold?
Level 1
Chapter 8 – Section I – Exercise 20
Broadway Carpets sells designer rugs at retail for $875.88. If
a 50% markup based on cost was added, what is the cost of the
designer rugs?
Level 1
Chapter 8 – Section II – Exercise 15
Waterbed City purchases beds from the manufacturer for $212.35. If the store policy
is to mark up all merchandise 42% based on selling price, what is the retail selling
price of the beds?
Level 2
Chapter 8 – Section II – Exercise 18
You are the buyer for The Shoe Outlet. Your are looking for a line of men’s shoes
to retail for $79.95. If your objective is a 55% markup based on selling price, what
is the most that you can pay for the shoes to still get the desired markup?
Level 3
Chapter 8 – Section II – Exercise 21
A purse has a cost of $21.50 and a selling price of $51.99.
a. What is the amount of markup on the purse?
b. What is the percent markup based on cost? (Round your final answer to the nearest tenth.)
c. What is the corresponding percent markup based on selling price?
(Round your final answer to the nearest tenth.)
Level 2
Chapter 8 – Section III – Exercise 16
Carousel Toys has Romper Buckaroos, wooden rocking horses for toddlers,
on a 30% markdown sale for $72.09. What was the original price before they
were marked down? Round to the nearest cent.
Level 2
Chapter 8 – Section III – Exercise 19
In February, Golf World, a retail shop, purchased golf clubs for $453.50 per set. The original
markup was 35% based on selling price. In April, the shop took a 20% markdown by having a
special sale. After 2 weeks, the sale was over and the clubs were marked up 10%. In June, the
shop offered a storewide sale of 15% off all merchandise, and in September, a final 10% mark
down was taken on the clubs. What was the final selling price of the golf clubs?
Level 2
Chapter 8 – Section III – Exercise 22
The Flour Power Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a
spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a
40% markup based on cost?
Level 3
Chapter 8 – Section III – Exercise 24
Your are the manager of WorldWide Athlete, a chain of six sporting goods shops in your
area. The shops sell 12 racing bikes per week at a retail price of $679.99. Recently, you
put the bikes on sale at $599.99. At the sale price, 15 bikes were sold during the one-
week sale.
a. What was your markdown percent on the bikes?
b. What is the percent increase in number of bikes sold each week during the sale?
c. How much more revenue would be earned in six months by permanently selling
the bikes at the lower price, rather than having a one-week sale, each month?
(6 sale weeks in 26 weeks)
Level 1
Chapter 8 – Assessment Test – Exercise 4
Wyatt’s Western Wear purchases shirts for $47.50 each. A $34.00 markup is added to
the shirts.
a. What is the selling price?
b. What is the percent markup based on cost?
c. What is the percent markup based on selling price?
Level 1
Chapter 8 – Assessment Test – Exercise 7
The Carpet Gallery is looking for a new line of nylon carpeting to retail at $39.88 per square
yard. If management wants a 60% markup based on selling price, what is the most that can
be paid for the carpeting to still get the desired markup?
Level 2
Chapter 8 – Assessment Test – Exercise 12
What was the original selling price of a treadmill, currently on sale for $2,484.00 after a
20% markdown?
Level 3
Chapter 8 – Assessment Test – Exercise 14
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked
chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated.
a. At what price should the dinners be sold to achieve a 60% markup based on selling price?
b. If Epicure offers a $1.00-off coupon in a newspaper advertisement, what markdown percent
does the coupon represent? (Round your answer to the nearest tenth.)