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# Math OER Turn In Problems  Business Decisions — Margin, Markup, and Pricing

The greatest reward for a student is not a good grade. It is the willingness of his teacher to listen to him.

- Nikolay Konstantinov

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1. Gavin's tool emporium uses a 40% margin rate. Its most popular item has a \$240 selling price. What is the margin amount?

\$96 \$144 \$171.43 \$336

2. Grace works at a store that uses a 40% markup rate. She orders an item for \$90 wholesale cost. What is the markup amount?

\$36 \$54 \$64.29 \$126

3. Georgina's Vitamin Shop uses a 75% margin rate. It needs to stock a certain bottle of vitamins with a selling price of no more than \$3.50. How much can the shop allow a supplier to charge for this bottle of vitamins?

\$0.61 \$0.88 \$2.00 \$2.63

4. Geoffrey works at a store that uses a 30% markup rate. The wholesale cost of an certain item is at minimum \$22. The store's competitors sell an equivalent item for \$30. Will Geoffrey's store undercut the competition if they stock this item?

yes, by \$1.40 no, by \$1.43
yes, by \$13.07 no, by \$6.60

5. Galina has a clock that cost her \$62.50. She wants to sell it online for \$102.50, for a profit of \$40. What is the margin rate? What is the markup rate?

margin rate 39% markup rate 25%
margin rate 64% markup rate 39%

6. Grafton works at a sporting goods store, and knows that a certain kind of skis will only sell if it is priced \$109.95 or less. The wholesale cost is \$80. What is the markup rate?

24% 27% 33% 37%

7. A fancy new infant car seat has a skim price of \$220 initially, but the sale price eventually settles at the penetration price of \$150. The wholesale cost is \$67. Divide the larger margin by the smaller margin to find the percentage of extra margin from skimming.

47% more margin 54% more margin
68% more margin 84% more margin

8. A restaurant meal that serves six has \$50 food cost, \$70 labor cost, and \$25 other cost. Find the price per plate using to the desired profit method with a 10% desired profit, and then with the food cost percentage method with a 30% scale factor.

\$14.50 with desired profit method \$10.83 with food cost method
\$26.58 with desired profit method \$15.00 with food cost method

9. The manager of a furniture store knows that a certain table will only sell if the sale price \$250 or less. Currently the sale price is \$275. What percent discount is needed?

9% 10% 90% 110%

10. Giselle works at a candy store. She knows from past years' experience that after Valentine's Day she needs to reduce the prices of the special \$30 chocolate boxes down to \$18 to clear out that inventory. She uses a store-wide sale of 10%, hoping that will attract customers. She also distributes a coupon that further discounts the sale price of just those expensive chocolate boxes. What percent discount is needed on the coupon?

33% 40% 60% 67%