MAT112: BUSINESS MATHEMATIC

CHAPTER 3: MATHEMATICAL APPLICATION IN TRADING AND RETAILING

3.2 MARKUP AND MARKDOWN

QUESTION 1
SJB Shop bought a planner at RM 20 each. The shop sold the planner for RM 27. Find the
percentage of markup based on cost.

QUESTION 2
A retailer purchased 100 units of highlighter for RM 190. He then sold the highlighters with
35% net profit based on cost. The operation expenses incurred were 20% based on selling
price. For each of highlighter, find
a. the selling price.
b. the breakeven price.
c. the profit or loss if the retailer sells the highlighter at RM 2.70.
d. the maximum markdown percent could be offered without incurring any loss.

QUESTION 3
A retailer bought 50 units of notebooks for RM 90,000. Operating expenses incurred were
10% based on cost and the retailer decided to obtain 40% net profit based on selling price.
For each of the notebook, find
a. the selling price.
b. the net profit.
c. the breakeven price.
d. the amount of the net profit or loss if the price of the notebook is reduced by 45%.

QUESTION 4
Ariana Boutique sold their premium shawl collection at RM 216 each. If the gross profit was
44% on the cost, find the cost price of the premium shawl.

QUESTION 5
Rayyan Company bought 150 printers for RM 34,500. The company wanted a net profit of
20% based on cost while the operating expenses incurred were 15% based on selling price.
Find
a. the selling price for each printer.
b. the gross profit for each printer.
c. the breakeven price for each printer.
d. the amount of net profit or loss if the price.
e. the maximum percentage of markdown that can be given without incurring any loss.

QUESTION 6
A retailer bought 50 calculators for RM 2,250. The retailer wished to obtain 20% net profit
based on cost and the operating expenses were 13% based on cost. Find
a. the selling price for each calculator.
b. the breakeven price for each calculator.
c. the amount of net profit or loss if the calculator was sold at RM 60.
d. the amount of net profit or loss if the calculator was markdown by 10%.
e. the maximum percentage of markdown that can be given without incurring any loss.
QUESTION 7
Awady bought an electric fishing reel at RM 4,400. He then sold the electric fishing reel and
made a net profit of 25% based on cost. The operating expenses were 20% of the selling
price. Find
a. the selling price for the electric fishing reel.
b. the breakeven price of the electric fishing reel.
c. the amount of net profit or loss if the electric fishing reel was sold at RM 6,000.
d. the amount of net profit or loss if the electric fishing reel was markdown by 35%.
e. the maximum percentage of markdown that can be given without incurring any loss.