Question

OPMT 1110: Business Mathematics Review For Test 1 Page 2 of 3 4. Samrung sells a 60-inch 3D television to retailers for $3,125 less discounts of 24 ors for $3.125 less discounts of 22% and 20%. (a) If a retailer sells the television for $2,600, what is their percent margin? (b) A competitor has the same list price as Samrung but sells the television to retailers for 40% off the list price. Samrung would like to add a chained discount so they can beat the competitor's net price by $42. What third discount rate does Samrung require? 5. You own a Juicing Stand in Metrotown Mall where you serve fresh juice to your customers. The rising cost of oranges has caused you to re-evaluate what you charge for fresh orange our oranges from an American supplier for $0.50 US per pound. The average weight of an orange is 200 grams and it takes about 6 oranges to make a glass of juice. Use the following rates: $1 US=$1.135 CDN 1 orange = 200 g 1 pound = 454 g 6 oranges = 1 glass of juice (a) What is your cost in Canadian dollars to produce a glass of orange juice? (b) If you want a 75% margin on all your sales, how much should you charge for a glass of orange juice? 6. A clothing store marks up the cost of all clothing by 250%. If the store sells a pair of jeans fe $175, how much did the pair of jeans cost the store? 7. You are moving at the end of September and need to rent a moving van. Thrifty charges $1 plus $0.40 per kilometre driven to rent a one-ton moving van van bo (a) Write down the cost equation for Thrifty. (b) Another company, UMove, charges a flat rate of $130 per day to rent a one-ton moving van. For what number of kilometres would the costs be equal for Thrifty and UMove? 1 Pound 0.500s=

Answer 1

4.

a. Original Price => 3125. FIrst Discount = 3125*22% = 687.5. Second Discount =(3125-687.5)*20% = 487.50. So Cost Price to retailer => 3125 - 687.5 - 487.5 = 1950. So Margin % = (Selling Price - Cost Price)/selling price *100 => (2600-1950)/2600*100 = 25%.

b. Selling Price of competitor =>3125*(100-40)% =>1875.

So Third discount in the chain should be $ 42. In % => 42$/1875 * 100 = 2.24%.

5.

a. Cost of one glass juice =>

• Weight in Pounds =>(6 oranges * 200 grams) / (454 grams) = 2.643 pounds
• Cost in USD => 2.643 pounds * 0.5 $ = 1.3216
• SO, Cost in CDN = 1.3216 * 1.135 = 1.5 CDN

b. Margin reqd = 75% on sales. So Selling Price = 1.5 * 100/25 = 6 CDN.

6. Mark up on costing = 250%. Cost Price = Selling Price * 100 / (100 + 250)

ie, 175 * 100 / 350 = 50 $.