ENT I 5.02 Quiz

What is the final cost to the business of a product priced at $40 with a 20% trade discount?

A business determines the final cost of a product purchased for resale by subtracting allowed discounts and transportation charges from which component?

Businesses should set their selling prices at a level that will cause which situation?

Clyde rented an ice cream truck in order to earn money for college. His truck rental is $200 per week and has a yearly license fee of $52. It costs him $200 for 500 ice cream bars that he plans to sell for $1.10 each. How many ice cream bars must Clyde sell each week in order to reach the break-even point?

Which is an appropriate selling price for a product with total costs of $10.00 and a gross margin of $5.00?

Which primary factors do business owners consider when determining the ceiling prices of their products?

Calculate the break-even point in dollars if a business has total fixed costs of $875,000; the unit selling price is $1,200; and the variable cost per unit is $700.

A business bought 144 items at $6.50 each and 120 items at $3.75 each. With a 10% off-season discount, what is the total cost to the business?

What is the break-even point in units for a business whose total fixed costs are $325,000, selling price per unit is $18, and variable cost per unit is $15.50?

What is the selling price from the following information: cost, $8.45; operation expenses, $.50; and profit, $.80?