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SEM 1 Obj. 4.03 Directions for Numbers 1- 28 : Read each multiple choice item and possible answers carefully. Mark the letter of the correct answer on your answer sheet or as directed by your teacher. MAKE NO MARKS ON THIS TEST.

1

Christine needs to stock up on office supplies. She bought four packages of multi-colored file folders at $15.25 per package, three boxes of felt-tip markers at $8.98 per box, and two staplers at $14.99 each. Assuming a tax rate of 7.5%, what was the total cost of Christine’s purchase?

4

When completing a sales transaction, the sales associate should: A Add amounts together, calculate sales tax and total. B Calculate sales tax after each item. C Compute the extension.

A $ 8.84

D Not count money back to the customer.

B $ 61.00 C $117.92 D $126.76

2

5

Callie did such a good job convincing Ms. Akins of the benefits of owning a sports watch that Ms. Akins decided to buy one for each of her two children and one for herself. If the price of the watch was $29.99, how much will Ms. Akins pay before tax?

There are several factors that affect the cost of merchandise and should be negotiated whenever possible. They are: A Cost, discounts, and allowances. B Credit sales versus cash sales. C Expenses and overhead cost. D Sales tax and quantity purchased.

A $29.99 B $89.97 C $96.72

6

D $98.79

Offering 10 free t-shirts for a large order is a means of goodwill, encourages future purchases and is called a(n): A Allowance.

3

B Business transaction.

Debit cards are bankcards used to make a purchase in the same way a credit card is used, except the funds are:

C Discount. D Reward incentive.

A Available 36 hours later. B Not available immediately. C Withdrawn from the customer’s checking account. D Withdrawn from the customer’s credit card.

7

Profit is: A A reduction in the selling price. B The actual amount paid to the vendors for the merchandise. C The amount left from revenue after the costs of merchandise and expenses have been paid. D The difference between retail price and cost.

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SEM 1 Obj. 4.03

8

Determine markup percentage based on cost for an item with a dollar markup of $1500, a cost of $1500, and a retail price of $3000?

The coins and currency for the day’s business are

12 part of the:

A Cash drawer.

A 1%

B Cash sales.

B 50%

C Shift drawer.

C 100%

D Start-up funds.

D 200% If there is less money than planned in the drawer,

9

The retail price of a treadmill is $499.00. It is being marked down 15%. What will be its new selling price?

13 the till is considered: A Balanced. B In excess.

A $74.85

C Over.

B $424.15

D Short.

C $451.78 D $573.85

The total of all sales for the time period minus

14 any sales returns and allowances is: Markdowns are expressed as a percentage of net

A Cost of goods sold.

10 sales and cannot be calculated until merchandise is:

B Expenditures.

A Displayed.

C Income.

B Ordered.

D Net profit.

C Returned. D Sold.

What is left after all expenses have been paid by

15 the business?

A Gross profit

If net sales are $750,000, and the markdown 11 percentage of net sales is 5%, what is the dollar markdown?

B Gross sales C Net profit

A $14,750

D Net sales

B $15,000 C $37,500 D $38,700

16

What is the formula for calculating markup? A Cost (C) / 1- Markup (MU) % B Cost (C) + Markup (MU) C Retail Price (RP) – Cost (C) D Retail Price (RP) – Markup (MU)

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SEM 1 Obj. 4.03 The most basic formula for calculating retail

17 price is:

To determine markup percentage based on cost,

21 divide dollar markup by:

A Cost (C)- MarkupRetail (MU).

A Cost.

B Cost (C) + Markup (MU).

B Cost of goods sold.

C Retail Price (RP) – Markup (MU)%.

C Retail.

D Retail Price (RP) + Markup (MU).

D 100.

The formula for calculating retail price

18 percentage markup is:

Wrong styles, color, sizes, or quantities being

22 purchased is referred to as a(n):

A Cost (C) - Markup (MU).

A Buying error.

B Cost (C) / 1- Markup (MU) %.

B Pricing error.

C Retail Price (RP) – Cost (C).

C Special sale.

D Retail Price (RP) – Markup (MU)%.

D Unprepared sale.

What is the cost of an item if the retail price is

19 $80.00 and markup is $40.00?

The amount a retailer actually pays for

23 merchandise is called:

A $40.00

A Cash allowances.

B $120.00

B Cost of merchandise sold.

C 40% cost

C Extensions.

D 50% cost

D Real funds.

What is the formula for markup percentage based

20 on retail?

24

Cost of merchandise sold is the:

A Dollar Markup (MU) / Retail Price (RP)

A Actual amount paid to vendors for the merchandise.

B Dollar Markup (MU) - Retail Price (RP)

B Amount left once expenses have been paid.

C Dollar Markup (MU) + Retail Price (RP)

C Difference between profit and markup.

D Dollar Markup (MU) x Retail Price (RP)

D Extension after calculating markup.

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SEM 1 Obj. 4.03

25

Cash and checks are considered: A Cash discounts. B Cash sales. C Credit sales. D Discounted sales.

26

The formula for calculating cost is: A Cost (C) / 1- Markup (MU) %. B Cost (C) + Markup (MU). C Retail Price (RP) +Cost (C). D Retail Price (RP) – Markup (MU).

27

The formula for markdown is: A Retail price (RP) / Markdown %. B Retail price (RP) - Markdown %. C Retail price (RP) + Markdown %. D Retail price (RP) x Markdown %.

28

The formula for markdown percentage is: A Dollar Markdown (MD) / Net Sales. B Dollar Markdown (MD) - Net Sales. C Dollar Markdown (MD) + Net Sales. D Dollar Markdown (MD) x Net Sales.

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Page 1 of 2 Scoring Key

SEM 1 Obj. 4.03 ?

Answer/ Scale

Objective

?

Answer/ Scale

Objective

1

1 D

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15

15 C

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2

2 B

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16

16 C

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3

3 C

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17

17 B

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4

4 A

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18

18 B

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5

5 A

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19

19 A

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6

6 A

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20

20 A

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7

7 C

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21

21 A

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8

8 C

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22

22 A

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9

9 B

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23

23 B

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10

10 D

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24

24 A

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11

11 C

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25

25 B

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12

12 A

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26

26 D

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13

13 D

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27

27 D

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14

14 C

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28

28 A

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Minimum points required to achieve mastery category

Total questions on test: 28 Objectives measured: 1

Items

Points

28

28

Questions measuring this objective 1

2

3

4

5

6

7

8

9

10

11

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12

13

14

15

16

17

18

19

20

21

22

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23

24

25

26

27

28

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Totals

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28

21

21

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18

18

Page 2 of 2 Scoring Key

SEM 1 Obj. 4.03 Items used in test ?

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