Questions On Mark-up/Down & Discounts

September 6th, 2008 Comments off
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Append below some questions for students to practise on mark-up/down & discounts commonly use in trading (buying and selling):-




Mr. A bought product A at $20 each and sells them at $25 each.

(a) What percentage profit on the cost price did he make?

(b) Later on, he reduced the selling price by 5%. What percentage profit on the cost did he make?


Mr A sells a machine for $25,800 making a gain of 72% on his cost price.

(a) How much did he pay for the machine?

(b) What was his profit?


Mr A’s one day’s taking is $500 and he expects his margin to be 30%. Calculate his profit on that day


XYZ Ltd issues a price list of its goods. The retailer when buying from XYZ Ltd receives a discount of 25% off the list price. A customer buying these goods for cash at the list price from the retailer is allowed a 5% discount.

Calculate the percentage profit that the retailer will make when he sells these goods for cash?


A trader marks his goods so as to show a profit of 40% of his outlay, but allows his customers a discount of 5% of the marked price if they pay cash. When dealing with cash customers, find:

(a) the profit he makes on goods that cost his $414

(b) the profit he makes on goods marked at $189

© the price to the trader of goods marked at $78.40

(d) the profit he makes as a percentage of the marked price


A dealer marks his goods at 20% above the price he pays, but allows a customer discount of 5% of the marked price of the goods. Find:

(a) the price that a customer pays for goods that cost the dealer $880

(b) the price that a customer pays for goods that cost the dealer $880

© the cost to the dealer of goods for which a customer paid $280.44

(d) the profit the dealer actually makes, if a customer receives gods marked at $800, but goes bankrupt and can only pay 95 cent in the $


If the manufacturer of a product adds a mark-up of 25% the wholesaler a mark-up of 30% and the retailer a mark-up of 50%, what was the cost of manufacture of the product when the retail price was $78?

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Financial Accounting


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