1104 Exam 2 Review 3e(1).docx

Math 1104 Exam 2 Review Material Chapter 11 ~ Terminology and Concepts to Understand: Amount of Trade Discount, Chain Discount, Cash Discount, Complement, Credit Period, Discount Period, EOM, FOB Destination, FOB Shipping Point, List Price, Net Price, Net Price Equivalent Rate, Example of Ordinary Dating, ROG, Single Equivalent Discount Rate, Terms of Sale 1. Complete the following: 2. Find amount of (A) net price and (B) trade discount. Stove: List price: $1,400 Chain discount: 13/10/4 3. Which option of a series of trade will save you the most money? Page | 1

4. Complete: Item List Chain Discount Net Price EQ Rate Single EQ Rate Amount of Trade Discount Net Price Rug $1400 18/12 5. Calculate (A) amount to be credited and (B) balance outstanding: Invoice: $3,000; Terms 2/10, n/30 Invoice date: July 5 Payment amount $600 Date paid: July 14 Page | 2

6. Mel's furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indicated a trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM. Assuming Mel pays on November 2, what amount would be paid? (Be sure to include the freight cost.) completed 7. Complete the following table: Date of Invoice Date of Goods Received Terms Last Day of Discount Period End Of Credit Period Oct. 7 2/10, N/30 June 12 2/10, EOM July 29 2/10, EOM March 8 July 2 2/10, N/30, ROG 8. If a manufacturer's list price is $800 and Bill's Outlet buys the goods for $650, what is the trade discount percent? (Round answer to the nearest hundredth percent.) completed Page | 3

Chapter 12 ~ Terminology and Concepts to Understand: Cost, Gross Profit, Markdowns, Markups, Net Income, Breakeven Point, Percent Markup on Cost, Percent Markup on Selling Price, and Contribution Margin 1. Assume markup is based on cost. Complete: Cost % of Markup Amount of Markup Selling Price $500 30% 2. A new TV sells for $950. The store marks up the TV 30% on cost. What is the cost and dollar markup of the TV? (Round your answers to the nearest hundredth.) completed 3. Calculate the final selling price to the nearest cent (round each calculation to nearest cent as needed): completed Page | 4

4. Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point? completed Chapter 13 ~ Terminology and Concepts to Understand: Accounts Payable, Accounts Receivable, Assets, Liabilities, Balance Sheet, Income Statement, Comparative Statements, Cost of Merchandise Sold, Gross Profit, Vertical Analysis, Horizontal Analysis, Merchandise Inventory, Net Income, Net Purchases, Net Sales, Prepaid Expense, Retained Earnings, Trend Analysis, Ratio Analysis (Acid Test, Asset Turnover, Current Ratio, Debt To Income Ratio, etc.) 1) From the following, calculate (A) net sales, (B) gross profit, (C) total operating expenses, and (D) net income: sales returns $700, rent expense $1,288, sales discounts $950, depreciation expense $600, cost of merchandise sold $7,600, gross sales $20,900, advertising expense $1,650, salary expense $2,900, heat expense $900. 2) From the following information, could you help Bill calculate his cost of merchandise sold? completed Page | 5

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