Section II: Calculate, Fill in the Boxes. (Use the formula provided)
1. Selling Price $5, Cost Price $2, Mark up ($), Mark up (%)
2. Selling Price, Cost Price $3, Mark up ($) $6, Mark up (%)
3. Selling Price $10, Cost Price, Mark up ($), Mark up (%) 30%
4. Selling Price, Cost Price $12, Mark up ($), Mark up (%) 66%
Section III: Find the right answer after doing the calculation
1. It costs the producer of a Bike $54 to make each one. The producer charges wholesale distributors $74 for each Bike purchased. The producer's markup in dollars is ____ and in percentage terms based on selling price, is
A. $20; 27%
B. $20; 37%
C. $55; 25%
D. $99; 20%
2. Mark is trying to determine his firm's average cost per unit of production. He finds that the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000. If the company produces 20,000 items in the time period, the average cost is
A. $2
B. $4
C. $12
D. $6
3. Nike sells a basketball to a wholesaler for $16, and the wholesaler applies a 20 percent markup. A retailer then applies a 33.3 percent markup. The final selling price is:
A. $28.00
B. $30.00
C. $27.59
D. $25.44
