1. Walmart buys Timex watches from Timex at $100.00. The markup rate at Walmart is 40%.
a. What was the original markup of the watch?
b. What is Walmart’s Selling Price?
c. Some of the watches do not sell at the initial selling price so Walmart offers them at a discount of 15%. What is the maintained markup, markdown and final selling price of the watch?

2. Suppose, Macys decides to discount Ralph Lauren dresses, originally sold for $120, by 10% and offers another 10% on the discounted price
a. Is it the same as giving 20% discount? Why or why not? Show all calculations.
b. Calculate the total markdown in absolute terms after both discounts (10% + 10%) were given.
c. After both discounts (10% + 10%) were taken, what was the total markdown rate?

3. BestBuy is currently selling GE dishwasher for a discounted price of $500. The original price for the dishwasher was $800.
a. Calculate the markdown in absolute terms and the markdown rate.
b. By law, sales tax has to be applied to the discount price. However, would it be better for the consumer if the 7% sales tax was calculated before the discount rate was applied? Why or why not? Show all calculations to support your answer.

4. Target has a sign in its store that says all toys have been discounted 20%. You purchase a Monopoly board game for $40.
a. What is the original price?
b. Calculate markdown in absolute form.

5. Target buys hand sanitizers from the wholesaler at $3 and sells them in their stores at $8.

a. Find the original markup.
b. Now, assume the hand sanitizers does not sell for $8 so the store has to reduce the price by 10%. Calculate the final selling price and the maintained markup

Answer rating: 100% (QA)

1 a Original cost to Walmart is 100 Original markup is 100 Cost is 100 markup is amount added which ... View the full answer