Problem
I. A television set was sold during a clearance sale for $299.00. If the television was sold at a discount of 70%, what was the list price?
II. Uptown Goldsmith sells watches for $840.00 less 12.55%. Its competitors across the street offer the same type of watch for $860.00 less 13.25%, 11.5%. What additional rate of discount must Uptown offer to meet the competitor's price? Round the answer to the third decimal figure.
III. An invoice shows a net purchase price of $1809.13 after the subtraction of discounts of 12.5%, 25%, 8.3%. What was the list price?
IV. A merchant buys an item listed at $69.00 less 34% from a distributor. Overhead is 44% of cost and profit is 37.5% of cost. For how much should the item be retailed?
V. A dealer bought personal computers for $2 250.00 less 41%, 31%. They were sold for $1585.00.
i. What was the markup as a percent of cost?
ii. What was the markup as a percent of selling price?
VI. Peter plans to set up an on-line business selling software applications that he develops and supports. He believes that a price of $130 for his product including the technical support would be competitive. His monthly fixed expenses amount to $850. Peter would hire some college students to provide the technical support of the application paying them for 3 hours at $15 per hour for each client.
i. How many clients does Peter need to acquire to break even?
ii. If he wants to achieve a target profit of $500 monthly, how many clients does he need?
VII. Clara's business budget included sales of $350 000 and fixed costs of $52 600. If the total contribution margin for the business was $125 000, what are the sales needed to break even?