FIRST FORMATIF

Section 1
Question 1

1. Convert to a percentage:
a) 1/5
b) 1/4)
c) 3/4
2. Convert to a fraction:
a) 33 1/3%
b) 80.0%
c) 37.5%

3. Convert to a decimal:

a) 35%
b) 1/4
c) 60%

Section 2
Selling price = Cost price + Markup

Markup rate = (Markup/cost price) x 100%

Profit Margin = (Markup/Selling price) x 100%

Question 2
An item costing $20 is to be marked up by 50%. What is the selling price?

Markup = 20 x 50% = 10

Selling price = 20 + 10 = $30

Question 3
An item selling for $130.00 has been marked up by 60% on cost. What is the markup?
Markup = 130 x160% = $81.25

Question 4
The profit margin on an item is 20%. If the item sells for $50 what did it cost?

Question 5
Mary makes a gross profit of 50% on sales. If her cost of Sales for the month was $30,000, what were
total Sales?

Section 3
Discount price = Selling price(1 – Discount rate)
Discount price = Selling price(1 – DR 1)(1 – DR2)

Question 6
A clothing retailer marks shorts down to 12% below cost to clear them. The cost to the retailer was $20
per pair. She has 40 pairs of the shorts left.

Question 7
An item with a list price of $100 is discounted 10% then a further 20%.
What is its new price?

Question 8
A retailer offers a trade discount of 30% and a cash discount of 10%. If a tradesperson pays cash of
$315:
What was the list price of the goods?

Section 4
Question 9
Mo earns a monthly retainer of $1,000 plus 10% on all sales.
( i ) How much will Mo have to sell in a month in order to earn $4,000?

Question 10
Ken is offered a choice of two alternative earnings packages.
Package 1 is commission only at 20% on sales.
Package 2 is a monthly salary of $1,000 plus commission of 10% on all sales.