Math OER Zoom Room Textbook YouTube Distance Learning Tips

# Math OER Turn In Problems  Business Decisions — Margin, Markup, and Pricing

The homework you turn in to be graded is the "icing on the cake" that completes a long homework process.

You reviewed your notes. You attempted the example problems in the online notes. You used the problem bank. You did some random problems. Now, finally, you can show off the mastery you have gained from all that work.

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Answer every question. Then use the button at the bottom of the page to create a code by processing your answers. Copy-and-paste the code into the body of an e-mail to your instructor.

1. Gavin's tool emporium uses a 40% margin rate. Its most popular item has a \$240 selling price. What is the margin amount?

\$96 \$144 \$171.43 \$336

2. Grace works at a store that uses a 40% markup rate. She orders an item for \$90 wholesale cost. What is the markup amount?

\$36 \$54 \$64.29 \$126

3. Georgina's Vitamin Shop uses a 75% margin rate. It needs to stock a certain bottle of vitamins with a selling price of no more than \$3.50. How much can the shop allow a supplier to charge for this bottle of vitamins?

\$0.61 \$0.88 \$2.00 \$2.63

4. Geoffrey works at a store that uses a 30% markup rate. The wholesale cost of an certain item is at minimum \$22. The store's competitors sell an equivalent item for \$30. Will Geoffrey's store undercut the competition if they stock this item?

yes, by \$1.40 no, by \$1.43
yes, by \$13.07 no, by \$6.60

5. Galina has a clock that cost her \$62.50. She wants to sell it online for \$102.50, for a profit of \$40. What is the margin rate? What is the markup rate?

margin rate 39% markup rate 25%
margin rate 64% markup rate 39%

6. Grafton works at a sporting goods store, and knows that a certain kind of skis will only sell if it is priced \$109.95 or less. The wholesale cost is \$80. What is the markup rate?

24% 27% 33% 37%

7. A fancy new infant car seat has a skim price of \$220 initially, but the sale price eventually settles at the penetration price of \$150. The wholesale cost is \$67. Divide the larger margin by the smaller margin to find the percentage of extra margin from skimming.

47% more margin 54% more margin
68% more margin 84% more margin

8. A restaurant meal that serves six has \$50 food cost, \$70 labor cost, and \$25 other cost. Find the price per plate using to the desired profit method with a 10% desired profit, and then with the food cost percentage method with a 30% scale factor.

\$14.50 with desired profit method \$10.83 with food cost method
\$26.58 with desired profit method \$15.00 with food cost method

9. The manager of a furniture store knows that a certain table will only sell if the sale price \$250 or less. Currently the sale price is \$275. What percent discount is needed?

9% 10% 90% 110%

10. Giselle works at a candy store. She knows from past years' experience that after Valentine's Day she needs to reduce the prices of the special \$30 chocolate boxes down to \$18 to clear out that inventory. She uses a store-wide sale of 10%, hoping that will attract customers. She also distributes a coupon that further discounts the sale price of just those expensive chocolate boxes. What percent discount is needed on the coupon?

33% 40% 60% 67%