• Question 1
0 out of 5 points
The suggested price which the manufacturer presents a product for sale to the consumer is called the:
Answer
Selected Answer:
suggested retail price
• Question 2
0 out of 5 points
When a manufacturer offers a product for sale to a retailer, the amount deducted from the list price is called the:
Answer
Selected Answer:
net price
• Question 3
0 out of 5 points
To find the trade discount when the list price and single discount rate are given, use the following formula:
Answer
Selected Answer: [None Given]
• Question 4
5 out of 5 points
The net price of a product is:
Answer
Selected Answer:
list price minus trade discount
• Question 5
0 out of 5 points
The list price of a furnace is $2,468.00. The manufacturer offers a discount of 15%. The net price is:
Answer
Selected Answer: [None Given]
• Question 6
5 out of 5 points
100% minus the single discount rate is the:
Answer
Selected Answer:
complement
• Question 7
5 out of 5 points
The Earp Vitamin Company offers a list price of $.02 per unit. If you order 4,000 units and receive a discount rate of 15%, your net price would be:
Answer
Selected Answer:
$68.00
• Question 8
0 out of 5 points
Most products follow the route of going from a manufacturer to a:
Answer
Selected Answer:
retailer
• Question 9
0 out of 5 points
When calculating a trade discount, the difference between 100% and the percent of the discount is called the:
Answer
Selected Answer:
trade discount
• Question 10
0 out of 5 points
The trade discount amount is equal to:
Answer
Selected Answer:
the net price times the trade discount rate
• Question 11
5 out of 5 points
John sells bikes. He knows that the most people will pay for a bike is $129.95. John is convinced that he needs a 40 percent markup based on cost. The most that John can pay his supplier for each bike is:
Answer
Selected Answer:
$92.82
• Question 12
0 out of 5 points
Mr. Jones, the store manager for Clark’s Appliance, is having a difficult time placing a selling price on a freezer that cost $580.00. Mr. Jones knows his boss would like to have a 58 percent markup based on cost. The selling price should be:
Answer
Selected Answer:
none of the above
• Question 13
0 out of 5 points
Markup is:
Answer
Selected Answer:
the selling price times (1 plus the cost)
• Question 14
0 out of 5 points
The price of an item on the retail market is called the:
Answer
Selected Answer:
markdown price
• Question 15
0 out of 5 points
The price paid by the retailer, for the product being sold, is known as:
Answer
Selected Answer:
the markup
• Question 16
0 out of 5 points
The difference between the cost of a product and its selling price is the:
Answer
Selected Answer:
none of the above
• Question 17
5 out of 5 points
The costs associated with running a business are called:
Answer
Selected Answer:
operating expenses
• Question 18
0 out of 5 points
The amount a business gets to keep, after paying for all costs and expenses, is termed:
Answer
Selected Answer:
gross profit
• Question 19
5 out of 5 points
If costs and expenses are greater than the markup, for a given period, the difference is called:
Answer
Selected Answer:
net loss
• Question 20
0 out of 5 points
In arriving at a markup on merchandise, most ________ use the markup on cost method.
Answer
Selected Answer:
all of the above