What is the difference between a discount and a markup?
A discount reduces a price; a markup increases a price to set a resale value
If your order is over budget, which of these is the recommended first check?
Buy nothing at all
Whether you applied the discount before GST correctly
Ignore the budget
Give up and start a different business
Supplier X sells coffee beans at $22/kg. Supplier Y sells at $25/kg but offers a 10% bulk discount. Which is cheaper per kg after Y's discount?
They're exactly the same price
Supplier Y ($22 vs $22.50)
Cannot be compared
Supplier X ($22 vs $22.50)
In Australia, GST is charged at what rate?
10%
A $250 item has a 20% discount, then 10% GST is added. What is the final price?
$220
After a 10% discount, a $400 item costs $360. What is the GST (10%) on this discounted price?
$36
A $500 item: Deal A is 10% discount then 10% GST. Deal B is 5% discount then 10% GST. Which deal gives the lower final price?
Deal B ($522.50)
They're the same
Not enough information
Deal A ($495)
A supplier invoice shows a cost price of $50. With a 40% markup, what is the resale price?
$70
A cost price of $120 has a 25% markup applied. What is the resale price?
$150
Your order comes to $6,200 — $200 over your $6,000 budget. Which of these actually fixes the problem?
Ignore it since it's close enough
Double the size of your order
Add another $200 to your budget
Remove or swap $200 worth of stock for something cheaper
Which of these is an example of Equipment, not Stock?
Cups
Milk
A coffee machine
Coffee beans
What is the correct order for applying a discount and GST to a price?
Discount first, then GST
A $400 item has a 10% discount applied. What is the discount amount?
$40
A budget is $6,000. Equipment costs total $5,200. How much is left for stock?
$800
A supplier invoice shows: Item: Milk, Qty: 20 L, Unit price: $2/L. What is the invoice's line total (cost price) for this item?
$40