PRICING/MARKETING MATH BONUS DAY!!!

Instructions Groups of _________ Extra credit for winners of each round

Question 1 The cost to Pet Place is $54.78 for the dog beds it retails for $ What is the percent markup based on retail price and the percent markup based on cost price for this item?

QUESTION 2 A discount store sells athletic shoes for $ A retail store normally sells the same shoe for $ If the discount store sells 1,200 pairs, how many pairs does the retail store have to sell to have the same sales revenue? If the retail store sells 600 pairs at full price and 600 pairs at half price, what are its total sales revenues?

Question 3 Petite Boutique buys its blouses from Too Sweet blouse manufacturers. Too Sweet offers a 12% discount on orders of $3,000 or more. Petite Boutique ordered $4,200 worth of merchandise and insisted on terms of 4/10 net 30. If the store takes advantage of both discounts, what will be the net amount of the invoice?

QUESTION 4 A bathroom set is priced at $11,400 and has a trade discount of 15%. Shipping the set costs $ What is the delivered price if there is a cash discount of 4.5%?

Question 5 _______________ advertising is an illegal practice that occurs when a company first advertises a very low price for one item… but then requires its salespeople to deny customers access to the low-priced item and to offer instead a higher-priced item.

Question 6 Calculate the break-even point for a music CD that costs $12 to make and market and that will be sold for $15. The total quantity that will be sold at that price is 200,000.

QUESTION 7 What is the price of a chair that is normally $65.49, if it is marked down by 61%?

QUESTION 8 Use the “pricing backward from retail price” approach to calculate the manufacturer’s price to a wholesaler for a product that has a suggested retail price of $200. Assume that the retailer’s markup on the retail price is 40% and the wholesaler’s markup is 20%.

QUESTION 9 Suppose the manufacturer’s cost price for a hat is $20. The wholesaler needs to add a 15% markup to the cost price in order to make a profit. How much will he or she mark up the hat?

Question 10 Richard bought bath towels for his new apartment. The original price for the towels was $21.95 each, but they had been marked down by 33%. What was the total cost to Richard, excluding tax, for four towels?

QUESTION 11 An invoice for merchandise for $765 is dated July 27. It has terms 2/15, n30. What is the last date on which the cash discount can be taken?

QUESTION 12 The price of a pair of pants went from $19.99 to $ What was the percent increase in price?

Question 13 The marketing director for a technology company is trying to decide whether to use skimming pricing or penetration pricing for a new product the company has developed. He predicts that using skimming pricing and setting the price at $ will result in sales to about 500 buyers. If he uses penetration pricing, setting the price at half of the skimming price, however, the market would probably be 130% larger. How much more could the company make with the penetration pricing?

QUESTION 14 Skimming Pricing permits marketers to: a.Set a very high price for a new product when demand is greater than supply b.Enjoy a bargain image c.Lure customers away from higher-priced brands d.Raise their products price in the future without affecting customer loyalty.

QUESTION 15 Assume your firm’s sales increase from $3 million last year to $10 million this year. However, the market leader still enjoys a 40 percent share of the $200 million widget market. The other four competitors had sales this year of $53 million, $38 million, $12 million, and $7 million, respectively. For this year, your firm’s market position is: –1.5 percent –Five percent –Last –Fifth

QUESTION 16 The CD Store marks up it’s CD’s 31%. If a CD is bought by the store for $14.89, how much do they sell it for?

QUESTION 17 If you sell a product for $18.98 and it costs you $16.50 to make and market it, your return on investment for that product would be: 13 percent 15 percent 87 percent 115 percent

Question 18 The Sherman Antitrust Act outlawed monopolies. The Act gives the Justice Department the authority to prosecute companies that engage in what? 1.Price discrimination 2.Price fixing 3.Price wars 4.Coercive resale practices

QUESTION 19 A store that prices all of it’s sweaters at $50, $75, and $100 is following: Bundle Pricing An EDLP Policy A Price-Lining Policy A Discount Pricing Policy

QUESTION 20 A freezer is bought for $1,600 and then sold for $4000. What is the percent markup on selling price?

QUESTION 21 What is a product’s floor price?

QUESTION 22 Art was given an invoice for $576 with the terms 2/5, n15. If he paid the bill in three days, what discount did he receive?

QUESTION 23 A marketer who wants to project a quality image would price a sweater at: a.$ b.$ c.$ d.$147.59

QUESTION 24 If a sweater that is usually priced at $54.45 is marked down to $39.20 because of a rip, what is the percent of the markdown?

QUESTION 25 A retail department store that has price tags on all of its merchandise is practicing a: a.Flexible-priced policy b.Penetration pricing policy c.Skimming pricing policy d.One-price policy

QUESTION 26 Jack had some repairs done on his car. He owed $560 with the terms of 3/10, n 20. He paid $300 towards the repairs within the first ten days. What was his balance due after the payment?

QUESTION 27 The federal law that prohibits sellers from offering one price to one customer and another price to another customer in the same class of trade is the: a.Sherman Antitrust Act b.Clayton Antitrust Act c.Robinson-Patman Act d.Resale Price Maintenance Act

QUESTION 28 Lonnie and her roommate tipped the pizza delivery boy 20% of the price of the pizza. If the pizza cost $17.86, how much did they pay including the tip?

QUESTION 29 A manufacturer plans to produce 300,000 dolls that will be sold to wholesalers and retailers for $15 each. Unit costs and expenses associated with making and distributing one doll are $12. The point at which this manufacturer will break even is: a.375,000 dolls b.200,000 dolls c.240,000 dolls d.100,000 dolls

Question 30 Calculate what the wholesaler would pay for the following invoice: Total PurchaseTrade DiscountsNet Amount $ % & 25%

QUESTION 31 A special customer at the department store can buy clothes for 18% less than the original price. How much would a special customer pay for a shirt that cost $12.87?

QUESTION 32 An item priced at or below cost to draw customers into a store: Bait & Switch Advertising Loss Leader Unit Pricing Elastic Demand

Question 33 Your retail garden store buys 500 petunias at $1.49 each from the wholesaler. You plan to sell 75% of the flowers to customers for the full retail price of $2.65. Ten percent will be sold to employees at a 20% markdown, and the final 15% will be sold on sale for 25% off at the end of the season. In the end, how much will the store make in net profits?

Question 34 A buyer has an average markup on retail of 60% and a price lining policy for scarves at $20, $35, and $50. Determine the three cost prices that would be ideal for scarves. –Cost price for $20 price line ___________ –Cost price for $35 price line ___________ –Cost price for $50 price line ___________

Question 35 A retail buyer purchases 50,000 pairs of jeans at $30 each. –Advertising and promotional expenses cost $750,000. –If half the jeans are sold for $50 and half the jeans are sold for $55, what is the return on investment?