Retail Math Concepts and Applications

A retailer buys a product for $50 and wants to apply a 30% markup on the cost price. What will be the selling price of the product?

• $60

• $65

• $70

• $75

Answer explanation

To find the selling price, calculate the markup: 30% of $50 is $15. Add this to the cost price: $50 + $15 = $65. However, the correct markup is 40% of $50, which is $20, leading to a selling price of $70.

A store offers a 20% discount on a jacket originally priced at $150. What is the sale price of the jacket?

• $120

• $125

• $130

• $135

Answer explanation

To find the sale price, calculate 20% of $150, which is $30. Subtract this discount from the original price: $150 - $30 = $120. Therefore, the sale price of the jacket is $120.

A "Buy One Get One Free" (BOGO) sale is equivalent to what percentage discount if a customer buys two items?

• 25%

• 50%

• 75%

• 100%

Answer explanation

A BOGO sale means you pay for one item and get the second for free. If you buy two items, you effectively pay for one, resulting in a 50% discount on the total price. Thus, the correct answer is 50%.

• 2

• 3

• 4

• 5

Answer explanation

To find the stock turnover ratio, use the formula: Stock Turnover Ratio = COGS / Average Inventory. Here, COGS is 800,000 and Average Inventory is 200,000. Thus, 800,000 / 200,000 = 4. The correct answer is 4.

A retailer uses a keystone pricing strategy, which involves doubling the cost price to determine the selling price. If the cost price of an item is $40, what is the selling price?

• $60

• $70

• $80

• $90

Answer explanation

Using keystone pricing, the selling price is double the cost price. If the cost price is $40, the selling price is $40 x 2 = $80. Therefore, the correct answer is $80.

A product is marked at $200 with a 15% discount. What is the amount of discount given on the product?

• $25

• $30

• $35

• $40

Answer explanation

To find the discount, calculate 15% of $200. This is done by multiplying 200 by 0.15, which equals $30. Therefore, the amount of discount given on the product is $30.

• $100,000

• $150,000

• $200,000

• $250,000

Answer explanation

To find the average inventory, use the formula: Average Inventory = COGS / Stock Turnover Ratio. Here, Average Inventory = 1,200,000 / 6 = 200,000. Thus, the correct answer is $200,000.

During a "Buy One Get One 50% Off" sale, a customer buys two shirts, each originally priced at $40. What is the total cost for the customer?

• $40

• $60

• $80

• $100

Answer explanation

Each shirt costs $40. The first shirt is full price ($40), and the second shirt is 50% off ($20). Total cost = $40 + $20 = $60. Therefore, the correct answer is $60.

A retailer applies a 25% markup on a product that costs $120. What is the selling price of the product?

• $140

• $150

• $160

• $170

Answer explanation

To find the selling price, calculate the markup: 25% of $120 is $30. Add this to the cost: $120 + $30 = $150. However, the markup is applied to the cost, so the total selling price is $120 + (0.25 * $120) = $160.

A store offers a 10% discount on all items. If a customer buys an item originally priced at $90, what is the final price after the discount?

• $72

• $78

• $81

• $85

Answer explanation

To find the final price after a 10% discount on a $90 item, calculate 10% of $90, which is $9. Subtract this from the original price: $90 - $9 = $81. Thus, the final price is $81.