Answer to Question #235740 in Financial Math for Zach

Question

1. A computer software retailer used a markup rate of 40%.Find the selling price of a computer game that cost the retailer P 1,250.00?


2. A golf shop pays its wholesaler P 2,000.00 for a certain club, and then sells it to a golfer for P 3, 750.00. what is the markup rate?


3. A shoe store uses a 40% markup on cost of a pair of shoes that sells for P 3,150.00?


4. A item originally priced at P 2,750.00 is marked 25% off. What is the sale price?



5. An item that regularly sells for P 3,000.00 is marked down to P2,650.00. What is the markdown rate?



6. Assume that net income equals P 10, 000 on net sales of P 100, 00. What is the profit margin?

Answer 1

1.

$Markup=\%\space of \space cost \space price\\\frac{40}{100}\times1250=500\\selling \space price=500+1250\\=P1750$

2.

$cost=2000\\selling\space price =3750\\mark\space rate=\frac{sell\space price-cost\space price}{cost\space price}$

$\frac{3750-2000}{2000}\times100$

$=87.5\%$

3.

$markup=40\%\\selling\space price=3150\\\frac{40}{100}\times3150=1260$

$selling\space price=cost+markup\\=1260\times3150\\=P4,410$

4.

$markup=25\%\\cost\space price=2750\\\frac{25}{100}\times2750=6875\\sellin\space price=cost\space price +markup\\=2750+6875\\=P9,675$

5.

$cost\space price=2750\\sell\space price=3000\\marked\space down\space value=set\space price-cost\space price\\=3000-2650=350\\marked\space down\space rate=\frac{marked\space down\space value}{sell\space price}\\=\frac{350}{3000}\times100=11.67\%$

6.

$income\space10000\\net\space sales=100\\profit\space margin=\frac{income-sales}{income}\\=0.99$