Chapter 1 Review Questions (cont.)

Unless otherwise stated, round the final answer to 2 decimal places. 

[35] The Ray department store is selling all summer clothes at 50% off the regular retail price during the month of September. On Saturdays only, they are offering an additional 20% off the already discounted price. What is the single equivalent discount rate on Saturdays?

 

[36] A publisher sells its romance novels with chained discounts of 20% and 10%. The publisher would like to add a third discount to bring the overall discounts to 31.6%. Find the third discount rate.

 

[37]  If the net price of a typewriter was $425.59 after chain discounts of 25%, 10% and 3%, what was the list price? What is the equivalent single discount rate?

 

[38]  A patio set is listed at $350. What is the size of the discount (in dollars) if the buyer is eligible for discounts of 30%, 15% and 5%? Convert the chain discount into a single equivalent discount rate.

 

[39] Which offers the larger discount? Manufacturer A offering chain discounts of 30%, 20%, 5%, 2% or Manufacturer B giving 45%, 13%?

 

[40] Island Remanufactured Wood Products Inc. sells its products at trade discounts of 30%, 10%. A competitor has been offering products at the same list prices but with trade discounts of 25%, 20%. Island Reman wishes to beat the competitor’s prices by offering a third trade discount. At least how big must the additional discount rate be to meet this objective?

 

[41] Toys-R-Costly sells Barbie Computers for $840 less 20% and 15%. A competitor sells a similar computer for $800 less 25%. What further discount (second discount) must the competitor allow so that its net price is the same as Toys-R-Costly’s?

 

[42] In order to stimulate sales of file cabinets, a manufacturer had to offer a temporary additional discount to its present rate of 25%. The list price is $300. What additional temporary discount would have to be given in order to achieve a net price of $150?

 

[43] Wadi Air Conditioners Ltd. sells one model at a list price of $500. Retailers are offered discounts of 15% and 10%.

  1. Find the net price of an air conditioner.
  2. Find the single equivalent discount rate
  3. Wadi would like to add a third chained discount to bring the total discount to 27%. Calculate the rate of the third discount.

 

[44] A company manufactures Bluetooth Speakers. The Speakers retails for $400 and are offered to the wholesaler with chained discounts of 10% and 15%.

  1. Find the net price after discount.
  2. What is the single equivalent discount rate?
  3. The manufacturer would like to add a third discount to bring the total discount to 30%. Calculate the rate of the third discount.
  4. A competitor offers a single discount of 25%. This amounts to a discount of $87.50 off the list price. What is the list price?

 

[45]  After graduation you decide to start up a business selling spices imported from Colombia. The main product you import, saffron, sells for 95,149.87 Pesos for a 4-ounce jar. In Canada, you sell the product in 125 gram bags. Find the selling price in Canadian dollars per 125 gram bag. Use the following:

  • 1 pound = 454 grams
  • 1 USD = 1.5644 CAD
  • 125 grams = 1 bag
  • 16 ounces = 1 pound
  • 0.000427 USD = 1 COP (Columbian Peso)

 

[46] You are taking a holiday in Britain. You are taking $750 USD with you. How many British pounds can you buy with this money?

Rates:

  • $1 USD= $1.5644 CAD
  • 1 British pound (£) = $2.1356 CAD

 

[47] You are thinking of expanding your bottled  water  company to the US. Your company bottles pure Fraser River water collected near the Oak Street Bridge. Your water currently sells for $0.85 per 600 ml bottle.  The water shipped  to the US would be sold in quart bottles. What price, in US dollars, should you charge for a quart of your water? (Convert the Canadian price per 600 ml to a US price per quart).

Rates:

  • $1 USD= $1.5644 CAD
  • 1 Gallon = 3.7853 Litres
  • 4 Quarts = 1 Gallon
  • 1,000 ml = 1 Litre

 

[48] You missed the Back Yard Boys concert at GM Place, and have decided to drive to Seattle to see them. After driving through customs, you stop at the Thrifty market in Blaine. You see a quart size bottle of Duff Cola selling for $1.89 USD. You would like to compare this price to the price of a Canadian can of Cola. Convert the price to Canadian dollars per can.

Rates:

  • $1 USD = $1.5644 CAD
  • 1.0567 Quarts = 1 Litre
  • 1 Litre = 1,000 ml
  • 1 can = 355 ml

 

[49] In California gasoline sells for $1.99 USD per gallon. In British Columbia gasoline is currently selling for $0.729 CAD per liter. Convert the Canadian price per liter to US dollars per gallon. Is the price of gasoline cheaper in California or in BC?

Rates:

  • $1 USD= $1.5644 CAD
  • 1 Litre = 1.0567 Quarts
  • 4 Quarts = 1 Gallon

 

[50] You purchase gasoline for your gas stations from local refineries. A number of labour disruptions and increasing costs have motivated you to consider importing gasoline from the Emirate of Abu Dhabi. Refined gasoline sells for 91.30 Dirhams per barrel. Calculate the equivalent Canadian price in liters given:

Rates:

  • 3 Dirhams =  1 USD
  • 0.638 USD =  1 CAD
  • 1 Barrel = 42 Gallons
  • 1 Gallon = 4 Quarts
  • 1 Quart = 0.9464 Liters

 

[51]  Fill in the Following Table:

Cost Sales Price Markup in dollars % Markup % Margin
$125 $175
$75 $95

 

 

(source)