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    4-Mathematics of Merchandising PDF

    Uploaded by

    Ashley

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    © All Rights Reserved
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    of 16
    4 Mathematics of Merchandising Exercise 4.4 1 "1 13. 15. 47. 19. 24. Amount of discount = dl 33(8249) = $83,00 Net price = L — discount = $249.00 - $83.00 = $166.00 ‘Amount of discount = L — N = $127.98 - $106.65 = $24.33 ‘Amount of discount 9999 _ $21.33 499% 162% L $127.98 _ Discount rate, d= Discount _ $612.60 Discount _ $5125" = 1 d 036 $1750.00 Net price = List price ~ Discount = $1750.00 ~ $612.50 = $1137.50 List price = N + Discount = $15.07 + $12.33 = $27.40 List price = Discount 12.33 Discount rate = PSCOUN 190% - $1233 , 10016 = 45.09 iscount rate < S127 100% = 45.0% List price, L=-_N_ = $2649.00. ss956.00 7-d 1-0.125 Discount = L - N = $3256.00 ~ $2849.00 = $407.00 (1 —d,)(1 ~d2) = $99.00(1 — 0.30)(1 ~ 0.16667) = $57.25 = $99.00 - $57.75 = $41.25 Net price, N Discount = L— N $93.03 List price, L= 7—y, =$149,00 Ist price, L= GG Vi—da X= dg) (1—0.25X1—0.1Ki-0.078) 140.00 Discount = L - N = $149.00 ~ $93.03 = $55.97 Net price, N = L(1 —d) = $135.00 (1 ~ 0.38) = $83.70 Discount _ $223.14 Discount _o = $595. 3 are 7 859504 Discount = $595.04 — $223.14 = $371.90 Substitute L = $34,900 and N = $28,687.80 into N = L(1 ~ 4). $28,687.80 = $34,900(1—d) List price Net price = 0,822 = 0.178 = 17.8% ‘The dealer receives a 17.8% trade discount. Net price (Niagara) = L(1—d) = $72.00 (1 ~ 0.24) $54.72 Not price (Silverwood) =L(1 ~d) $54.72 = $74.50(1 —d) x Fa5 O78 d{Silverwood) = 1 ~ 0.7345 = 0.2655 = 26.55% ‘Chapter 4: Mathematics of Merchandising 51 Exel 23. 2. 2. 29. 34 33. 36, .e 4.1 (continued) . N__ $160,555.50 _ Seling price, L=="5="T"e ges $168,900.00 a. Net investment, N = L(1 — d) = $6500(1 — 0.055) N $6426 _ 477-0085 ~ 868° ‘Commission paid = L — N = $6800 - $6426 = $374.00 ‘Substitute d = 0.017 and N = 13,646 into N = L(1~ 4). 13,646 = L(1— 0.017) = 0.983. = 13046 - 13,982 0.983 ‘The indox fell 13,882 — 13,646 = 236 points on the day. ‘a. Given: d= 0.0365 and the decline, dL. = $26.43 million dL _ $26.43 million a _ $26.48 million _ $724,110 milo 1 eas” 8724-110 milion ‘Therefore, the second quarter revenue (L) was $724.110 million. Third-quarter revenue = ($724.110 - $26.43) million = $697.68 million b. Substitute d = 0.045 and N = 8500 into N = L(1—d). (4 — 0.045) = 0.9551. $5197.50 b, Total amount placed, Number of people leaving = 6901 ~ 8500 = 401. (1 ~ds)(1 = det ~ da) 11,500(1 - 0.251 - 0.0751 - 0.05) foL(1 — dh) .075(811,500)(1 - 0.25) gL (1 ~ di)(1 = da) 0.05($1 1,500)(0.75\0.925) = 0.9400 = 0.0600 = 6.00% a. Service discount = doL(1—d:) 412($3000)(1 — 0.20) $300,00 b. Advertising and promotion discount = daL(1 - d:)(1 ~ da) 0.05($3000)(1 — 0.201 - 0.125) $105.00 ‘Business Mathematics in Canada, 6/e Exercise 4.2 "1. 13. 15. 17. 19. N-=L(1—d) = $2365(1 ~ 0.02) = $2317.70 N=L(1 4) = $815.49(1 ~ 0.02) = $799.18 Payment = (Amount credited)(1 - d) = $1365.00(1 - 0.02) = $1397.70 Balance = Invoice amount - Amount credited = $2366.00 — $1365.00 = $1000.00 ‘Amount credited = Invoice amount — Balance = $3765.25 — $2042.28 = $1722.97 Payment = L(1 ~ d) = $1722.97(1 ~ 0.0133333) = $1700.00 ‘The 2% discount period ends on June 1 ‘The 1% discount period ends on June 11 a. The payment qualifies for a 2% discount. Payment = (Invoice amount)(1 ~ d) = $5076.64(1 - 0.02) = $4978.11 b. The payment qualifies for a 1% discount. Payment = $5076.64(1 — 0.01) = $5025.87 c. Same answer as in part b. a. May 1 falls 15 days after April 16. The $10,000 payment qualifies for @ 2% discount.. Amount credited = #19990 = $10,204.08 4-002 Balance owed = $18,976.45 ~ $10,204.08 = $8772.37 b. The May 15 payment qualifies for a 1% discount. Payment to settle account = $8772.37(1 — 0.01) = $8684.65 ‘The $5000 payment on March 29 qualifies for a 1.5% discount. ‘The $3000 payment on April 7 qualifies for a 0.5% discount. ‘$5000 = $5076: 7am 7 Amount ereited for $3000 payment = -SS000. - $301508 lance owed = $11,870 ~ $6076.14 - $3015.08 = $3778.78 b. The balance is due 30 days after March 21, that is, on AprL20. a. Amount credited for $5000 payment = The June 20 invoice does not qualify for a cash discount on July 4. Payment = $485 + $367(1 — 0.018) + $722(1 ~ 0.015) = $1957.67, $900 $850 ‘otal amount credited = + + Total amount credited = +5 gpg $700 70.01 = $923.08 + $858.59 + $700 = $2481.67 Balance owed = $2856.57 — $2481.67 $374.90 ‘Amount required to settle invoice #535 = $3228.56 Amount required to satle invoice #598 = $2945.91(1 — 0.02) = $2886.40 ano ta he applied to invoice #678 = $10,000.00 ~ $3228.56 — $2886.40 = $3885.04 ‘Amount credited to invoice #678 = SPSESE4 = sa046.91 Balance owed on invoice #678 = $6217.69 - $4046.91 = $2170.78 Panment on August 15 to setle invoice H678 = $2170.78(1 — 0.02) = $2127.98 Chapter 4: Mathomatics of Merchandising 53 Exercise 4.2 (continued) 21. Let the amount of each payment be represented by x. The total amount credited will be x= $975.61, Each of the three payments should be $975.61. Concept Questions (Section 4.3) 4. Both quantities have the same numerator, but the rate of markup has the smaller denominator (since C 100% 5, No. Atthe break-even point, there is no profit, The selling price at the break-even point still covers E as woll as C. If an item is sold at cost, the merchant will Jose E per unit sold. Exercise 4.3 1. Enter the given data on a markup diagram. s=$50 c= 830 E=0A406= | P= a — C= $50 ~ $30 = $20.00 (enter on the diagram) b. .4(§30) = $12.00 (enter on the diagram) c. P=M-E=$20-$12 = $8,00 @. Rate of markup on cost = 100% = Bx 100% = 66.67% eee $20 @ Roto of markup on selling price = “fx. 100% = 22 - up 9 price = AL. 100% = $5 x 100% = 40.00% 3. Enter the given data on @ markup diagram. $55.65 = C = $79.50 ~ $55.65 = $23.85 (enter on diagram) = 0.35 = 0,3($79.0) = $23.85 (enter on diagram) — B= $23.85 - $23.85 = $0 34 ‘Business Mathematics in Canada, 6/e bE Exercise 4.3 (continued) $23.85 M |. Rate of st = 100% = % 100% = 42,86 3, d. Rate of markup on cost = = ees 42.86% . M $23.85 R i = “room = x 100% = 30,004 fe. Rate of markup on selling price = = a5 30,00% 577.00 ~ $53.90 = $23.10 = 0.385 = 0.35(S77.00) = $26.95 P=M_-E= $23.10 ~ $26.95 = = $3.85 (loss) Rate of markup on cost a ose @. Rate of markup on selling price 7, S=C+M= $152.50 + $47.45 = $199.95, M $47.75 Rate of mark M 00% = $4775. 100% = 31.4 10 of markup on cost oor = SATE 100% = S11% $4775 Rate of markup on seling price = AL100% = 100% = 23.73% 3199.95 9, C=S-M= $1990 - $496 = $1555 Rate of markup on cost = 4x 100%= S435. 100% = 27.97% c 31555 $435 Rate of mark ti = 5 40 ate of markup on seling price So 11. since Mactoow=

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