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Practice Questions Lecture 13-15

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10 views

Practice Questions Lecture 13-15

Uploaded by

qazishahroze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Practice Questions for Lecture No.

13- 15

Lecture No. 13
Question 1:
A TV is sold on Rs. 10,000 at a gain of 20%. Find the amount of profit.
Solution:
As Profit = Selling price – Cost
Let X be the cost of chain then
X + 20% of X = 10,000
1.2 X = 10000
X = 10000/1.2 = 8333.33
Profit = 10000 – 8333.33 = Rs. 1666.67
Question 2:
A juicer is marked up by 10% to $ 500. What is the cost price and mark up price?
Solution:
Let ‘X’ be the cost price of an article.
Markup = 0.10 X
According to given condition
X +0.1X = 500
1.1 X = 500
X = 500/1.1
X= $ 454.55
Mark up price = 500 – 454.55 = $45.45
Cost price = x = $ 454.55
Question 3:
If a product cost $10 and the selling price is $15, then calculate the percentage mark up on cost.
Solution:
We know that
Question 4:
An item is marked down 20% of the original Price, the sale price is $90. Calculate the Original
price?
Solution:
Let " X " be the Original price.
X – 0.20X = 90
0.8X = 90
X = 90/0.8 =$ 112.5
Original price = $ 112.5

Lecture No. 14
Question 1:
Find the single discount rate that is equivalent to the series discounts 15%, 10%, 8%.
Solution:
Apply the multiple discounts to a list price of Rs. 100
Net price = 100(1-d1)(1-d2)(1-d3)
= 100 (1 - 0.15) (1 - 0.1) (1 - 0.08)
= 100 (0.85) (0.9)(0.92)
= 70.38%
% Discount = ( 100 – 70.38 ) % = 29.62%
Question 2:
The price of a truck is Rs. 600,000. The series discounts are 30%, 5%, 15%. What is the net
price?
Solution:
Net price = L (1-d1) (1-d2) (1-d3)
Net price = 600,000(1-0.3)(1-0.05)(1-0.15)
= 600,000(0.7)(0.95)(0.85)
= 600,000(0.56525)
= Rs. 339,150

Question 3:
The price of medicine inventory is Rs. 400,000. The invoice was dated December 1 st
and 15% discount is offered if invoice is paid up to 15 th December. What will be the
net payment for invoice value if it is paid up to 15th December?

Solution:
N = L (1 - d)
= 400,000(1-0.15)
= 400,000(0.85)
= Rs.340,000

Question 4:

The net price of a sewing machine is Rs. 11422 and the series discounts are 11%, 8 %, 7%. What
is the list price?

Solution:

Net price = L (1-d1) (1-d2) (1-d3)

11422 = L *(1-0.11) * (1-0.08) * (1-0.07)

= L * (0.89) * (0.92) * (0.93)

= Rs. 14999.65

Lecture No. 15
Question 1:
An item that regularly sells for $ 550 is Marked down to $ 385. What is the Discount Rate?
Solution:
Mark down = 550 – 385 = $ 165
Mark down Rate = (165 / 550) x 100
Mark down Rate = 30 %
Question 2:
Ahsan’s greeting card business sells a card for Rs. 90. If each card costs Rs 70 to him, what is
the Markup on Selling Price? Convert the Markup on Sale to %age Markup on Cost.
Solution:
Selling price = Rs. 90
Cost price = Rs. 70
Markup on selling price = Selling price - Cost price ×100%
Selling price
= 90 - 70 ×100%
90
= 22.22 %
% Markup on Cost = % Markup on Sale / (1 - % Markup on Sale)
= 22.22% / ( 1 – 22.22% )
= 0.2222 / ( 0.7778 )
= 0.2857
= 28.57%
Question 3:
A retailer buys goods at 20% discount on its marked price and sells them at 40% higher than the
marked price. What is the profit percent?

Solution:
Let the marked price of the article = Rs.100
Then its cost price = Rs.100 – Rs.20 = Rs.80
And the selling price = Rs.100 + Rs.40 = Rs.140
So
The profit = selling price – cost price
= 140-80 = 60

Question 4:

An article is purchased for Rs. 450 and sold for Rs. 500. Find the percentage markup and
percentage margin.

Solution:
Cost price = 450
Selling price = 500
Rs. Mark up = 500-450 = 50

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