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| 1 | |
Operating expenses are the unusual expense of doing business. |
| | A) | True |
| | B) | False |
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| 2 | |
When markups are based on cost the selling price is 100 percent. |
| | A) | True |
| | B) | False |
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| 3 | |
When markup is based on selling price the cost is 100 percent. |
| | A) | True |
| | B) | False |
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| 4 | |
Selling price times one minus markup percent on selling price will equal the cost if markup is based on selling price. |
| | A) | True |
| | B) | False |
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| 5 | |
Breakeven point and contribution margin are the same. |
| | A) | True |
| | B) | False |
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| 6 | |
Net income is calculated as: |
| | A) | Net sales + costs - operating expenses |
| | B) | Net sales - costs - operating expenses |
| | C) | Net sales + costs + operating expenses |
| | D) | Net sales - costs + operating expenses |
| | E) | None of the above |
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| 7 | |
If Moore Motors buys at cost a truck for $4,000 and plans to sell it for $6,000, the percent markup on cost is: |
| | A) | 33 1/3 percent |
| | B) | 40 percent |
| | C) | 50 percent |
| | D) | 60 percent |
| | E) | None of the above |
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| 8 | |
If percent markup on cost and selling price is known one is able to compute the: |
| | A) | Amount of markdown |
| | B) | Amount of spoilage |
| | C) | Cost |
| | D) | Selling price at wholesale |
| | E) | None of the above |
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| 9 | |
The markdown percent is calculated by: |
| | A) | Amount of markdown divided by sale price |
| | B) | Amount of markdown divided by original selling price |
| | C) | Sale price divided by amount of markdown |
| | D) | Original selling price divided by amount of markdown |
| | E) | None of the above |
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| 10 | |
Red Jeans Inc. sells jeans that cost $16.55 for a selling price of $35.99. The percent of markup based on cost is: |
| | A) | 117.46 percent |
| | B) | 194.44 percent |
| | C) | 54.02 percent |
| | D) | 37.07 percent |
| | E) | None of the above |
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| 11 | |
Ray Shelf knows his goods are marked up 42 percent on cost. If a T.V. cost Ray $350, the selling price would be: |
| | A) | $479 |
| | B) | $603.44 |
| | C) | $497 |
| | D) | $630.40 |
| | E) | None of the above |
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| 12 | |
Vic's Dept. Store bought a pewter serving set for $1,250. Vic wants to markup the set at 60 percent of the selling price. The selling price of the pewter serving set should be: |
| | A) | $2,000 |
| | B) | $2,900 |
| | C) | $3,125 |
| | D) | $3,521 |
| | E) | None of the above |
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| 13 | |
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: |
| | A) | $745.45 |
| | B) | $754.54 |
| | C) | $594.50 |
| | D) | $549.50 |
| | E) | None of the above |
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| 14 | |
A dress was originally selling for $150. Due to changing styles the 1st markdown was 10 percent and the second markdown 20 percent. The dress still did not sell so a final markdown of 5 percent was taken. The sale price is currently: |
| | A) | $112.50 |
| | B) | $102.60 |
| | C) | $135.00 |
| | D) | $105.00 |
| | E) | None of the above |
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| 15 | |
Jackie Smith, a customer of Roger Blank, will only pay $190 for a tennis racket. Assuming Roger works on a 60 percent markup on the selling price, the most Roger will pay the manufacturer is: |
| | A) | $76 |
| | B) | $114 |
| | C) | $67 |
| | D) | $141 |
| | E) | None of the above |
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