Business Math B - Checkpoints

A can of tennis balls has a 75% markup rate based on cost. Mel's Sporting Goods sells a can of tennis balls for $3.49. What is the markup to the nearest cent?

$1.50

Runner's Warehouse purchased digital watches for $92.99. Its markup rate is 25% based on the selling price. What is the selling price?

$123.99

The Home Remodeling Company borrowed $125,000 from Dodge Bank & Trust to pay for materials and labor for a new warehouse. Corner Bank lent the money at 2.0% above the prime rate of 5.25%. The loan is ordinary interest for 90 days. What is the maturity value of the loan?

$127,265.63

This is an incomplete income statement for Boston Computer Company. What is the net income?

$15,376.99

Jananda Roti owns a flower shop and marks items up at least 35% on the selling price. What is the most Jananda can pay for a dozen roses, if she sells each rose for $2.00?

$15.60

A manufacturer of woolen throw rugs pays an average of $15.00 for the wool and bindings to make each rug. The direct labor charge for weavers is $10.25 an hour. Each weaver can produce 4 rugs an hour. To the nearest cent, what is the prime cost of manufacturing a rug?

$17.56

The base rate for workers' compensation insurance for a motorcycle repair shop is $7.32 per $100 paid to employees. The total monthly payroll for the shop is $32,400. What is the monthly premium for the workers' compensation insurance?

$2,371.68

The Finest Hour department store wants to run a special ad this week in The Country Times. It wants to run a half-page ad on Friday, and a full-page ad on Saturday and Sunday. How much will it cost the Finest Hour for the ads?

$2,540

The net price of goods from Southern Flooring to Jerry's Carpet Outlet is $34,500. The terms are 8/10 EOM. The date of the invoice is October 5th. If the invoice is paid on October 15, what is the cash price?

$31,740

Add: $72.08 + $29. 37 + $275.00

$376.45

The list price of a Finch Electric iron is $62. The company is offering a chain discount of 30% less 10%. What is the final net price of the iron?

$39.06

Johnson Canniver has a repair shop. He bought a used lawn mower for $35.00 from a customer. He spent $39.17 on parts to repair the mower. He also painted and polished the mower at a cost of $36.43. He was able to sell the refurbished lawn mower for $155.00. What was Johnson's markup on the lawn mower to the nearest cent?

$40.40

An electronics store buys digital cameras from the manufacturer at $193.55. It marks them up 125% of the cost. What is the selling price you will find when you visit the store?

$435.49

Jalinda sells scarves at $3.50 each. Last month she sold 1,450 scarves. What was last month's revenue?

$5,075.00

Isabel Lopez works for Soccer Supply Company. For the first week of November, find the net pay for Lopez.

$529.81

Georgia Fineman is traveling to a show on green building for two days. Her lodging is $380 per night for two nights, with breakfast and lunch included. Her airfare was $320 and taxi costs to and from the airport totaled $55. She had a budget of $1,250. What is the maximum she can spend on dinner each night?

$57.50

Rangue Pharmacy Inc. has an annual gross income of $316,468. Deductions total $98,371. What is the federal corporate income tax?

$68,308

Bill Jones is an employee of Soccer Supply Company. Find Jones' net pay for the first week of November.

$749.03

Net income = _____ pay minus deductions

Gross

What does "2/10 net 30" mean on an invoice?

If paid 10 days from the date of the invoice, the customer gets 2% discount. Full payment due 30 days from the date of the invoice.

SureFire Distribution Company sells phone systems to businesses. On September 1, they began with a balance of 193 digital phones. It received shipments of 23 and 45 phones on September 15 and 30 respectively. It sold 45 phones on September 8 and 100 phones on September 19. How many were on hand as of September 30?

116

Juarez Distribution Company conducted a time study of Martha Smith's job as an installer. Using the observation chart, find her average time per installation.

22.3

To find the book value of an item, you must subtract the ___________ depreciation from the original cost of the item.

Accumulated

The invoice date is August 1st. The terms are 5/10 EOM. What is the last day to take the discount?

September 10

The invoice date is August 1st. The terms are 5/10 EOM. By when must the invoice be paid?

September 30

A coffee bean grower, a bean grinder in Ethiopia, a cargo ship carrying the coffee, a cafe in Italy, and customers drinking coffee form a ________. (Enter two words to complete the sentence.)

Supply chain

Which of the following are valid expressions for the accounting equation? (Select all that apply.)

Liabilities + Owner's Equity = Assets Liabilities = Assets - Owner's Equitity Owner's Equity = Assets - Liabilities

Generally, who produces the goods in a supply chain?

Manufacturer

This is part of an invoice that Sharon Niles received for a shipment of items. What is the last day Sharon can take advantage of the EOM discount?

May 10, 2012

Which of the following is the correct formula?

Net Price = List Price - Trade Discount

The amount by which assets exceed liabilities is called _________. (Select all that apply.)

Net worth, Owner's equity, Capital

Anita Alvarez sells clothing for Toddler's Shop. Baby blankets sell for $29.99 after a markup rate based on cost of 109%. Find the markup.

Not: $2.70 Not: $2.48

The selling price for a can of soda last year in the school vending machine was $0.75. This year the selling price is $0.70. Find the deflation rate.

Not: -25%

_________ measures the amount of goods and services the average citizen can afford to buy in one year.

Per capita GDP

Why is the current ratio important?

It gives the proportion of assets to liabilities and whether or not a company can pay its bills

Which of the following graphs always begins at (0, 0)?

The graph of the supply relationship

Mova Industries pays a finder's fee of 20% of the new employee's annual salary. What is the correct setup to find the finder's fee, when the new employee's salary is $150,000?

x = $150,000 * 0.20

Georgia Preserves is test marketing a new peach-orange marmalade. The following responses were collected from 500 people who were offered samples of the new product at a shopping mall. The marketing department of Georgia Preserves predicted that 300 people would probably buy the product between the present time and next year. Determine the relative error. (Hint: Find the absolute error first.) "I love it! Where can I buy it today?" = 127 responses "I'll probably try it over the next year, sometime." = 162 responses "I'll probably try it, but only if I have a discount coupon." = 153 responses "I don't like this marmalade." = 58 responses

3.8%

Zucker Enterprises manufactures painted porcelain dolls. Zucker conducted a time study of the painting task. The painters took from ½-hour to 1½ hours to paint one doll. Zucker Enterprises pays its painters $18.00 per hour. The company also pays $11.00 per doll for materials. It wants to spend no more than $24.50 in prime costs. What is the longest time a painter should spend painting a doll?

3/4 of an hour

What is the net-price rate when a designer swimsuit, originally priced at $85 is discounted 25/60?

30%

Last year's sales of a waterproof duct tape were 215,420 units to hardware stores and 78,353 to grocery stores. Sales to both markets are expected to increase by an average of 8% this year. What is the predicted combined total of unit sales of the duct tape to hardware and grocery stores this year? Round up to the nearest whole unit.

317,275

Harrison Hardware just purchased 3 new cash registers. Each cash register costs $1,800 and has an estimated life of 5 years. The trade-in value of each cash register is expected to be $100 at the end of 5 years. Using the straight-line method, what is the annual depreciation for the 3 cash registers combined?

$1,020

Benz and Jacobs Accounting purchased a new computer system for $3,500. The total resale value after 5 years is estimated to be $525. Using the straight-line method, Benz and Jacobs determined that the computer system would depreciate $595 per year. What is the value of the system at the end of the fourth year?

$1,120

The maturity value of a 6-year, 7.2% ordinary interest commercial loan is $2,076,400. Find the principal.

$1,450,000

The Daily News offers a 25% discount on a Monday ad that has already run on Sunday. Green's Grocery contracts for a full page ad to run on a Sunday and a Monday. What is the total cost of the ads?

$1,455

An organic cheese company uses the FIFO method of valuing inventory. As of May 31, the company had sold 160 wheels of organic cheese. Use the FIFO method to find the cost of the 150 wheels of cheese left in inventory.

$1,484.25

The Country Times offers a 50% discount on a Thursday ad that has already run on Sunday. Robert's Jewelers contracts for a full page ad on Sunday and the following Thursday. What is the cost of the ads?

$1,492.50

Third National Bank purchased 7 new laptop computers at $1,000 each. The estimated life of each computer is 4 years with a trade-in value of $125 at the end of the 4 years. Using the straight-line method, what is the combined annual depreciation for the computers to the nearest cent?

$1,531.25

An organic cheese company uses the FIFO method of valuing inventory. As of May 31, the company had sold 160 wheels of organic cheese. Use the FIFO method to find the cost of the 160 wheels sold.

$1,550.00

Ferguson Financial Advisers Inc. (FFAI) allocates 76% of its annual budget to employee compensation. FFAI spends $1,345,000 annually on employee compensation. What is the annual budget of FFAI?

$1,769,736.84

At the outdoor market, Craig Wang sells string beans for $1.99 a pound. The beans cost $0.89 a pound to grow. What is the markup to the nearest cent?

$1.10

The current cost of a box of cereal is $3.39. At the time of this writing, the CPI for cereal is 289.7. What was the cost of a box of cereal in 1983 to the nearest cent?

$1.17

In manufacturing a stuffed bear, Chaney Toys Inc. buys stuffing at $40 for a 180-pound bag and polyester material for the covers at $2.00 a yard. If one stuffed bear requires ½-pound of stuffing and 2 feet of polyester material, what is the direct material cost for manufacturing one toy?

$1.44

Zoro Manufacturing Company manufacturers wooden picture frames. Each piece of wood yields 15 frames. Each piece of wood costs $18.75. The direct labor charge is $13.50 per hour. Each hour, 65 frames can be produced. To the nearest cent, what is the prime cost of manufacturing one picture frame?

$1.46

A can of tennis balls has a 75% markup rate based on cost. Mel's Sporting Goods sells a can of tennis balls for $3.49. What is the cost to the nearest cent?

$1.99

What are the total operating expenses? (This is line (c) on the income statement.)

$10,207

Central Clinic recently purchased a new computer system for a total cost of $64,735. The estimated life of the system is 6 years. The trade-in value of the system after 6 years is estimated to be $900. Using the straight-line method, what is the annual depreciation to the nearest cent?

$10,639.17

Giant Department Stores, Inc. purchased bedroom curtains from The Linen Company for $6.19. The markup was $4.20. What was the selling price to the nearest cent?

$10.39

The Rawesome Cafeteria manufactures round metal tabletops for restaurants. The machinist uses ¼ sheet of metal for each tabletop including waste. Each sheet costs $380. The machinist cuts and polishes five tabletops each hour. The direct labor charge is $27.50 per hour. To the nearest cent, what is Rawesome's prime cost of cutting and polishing a tabletop?

$100.50

The list price for a lawnmower is $420. The net price is $315. What is the trade discount for the lawnmower?

$105

For Frank Music, what are the total assets? (Hint: Add the values of the items in the first column and the second column, excluding the Bank loan.)

$106,867.50

Martina's Electronics offers trade discounts and additional discounts to encourage large orders. What is the net price for a television if the total invoice is over $500?

$107.56

This is an incomplete income statement for Boston Computer Company. What are the total operating expenses?

$11,270.98

What is the net income? (This is line (d) on the income statement.)

$11,387

Luisa's Pet Store pays $7.63 for a case of gourmet cat food. The store's customers pay $19.49 per case for the cat food. What is the markup on a case of gourmet cat food?

$11.86

Lightbulbs Etc. uses the FIFO method to find the cost of goods sold and the value of the ending inventory. This is a record of the units received in the month of June. On June 30, they sold 128 energy-saving bulbs. What was the value of the remaining inventory?

$112.86

Isabel Lopez works for Soccer Supply Company. For the first week of November, find the total deductions for Lopez.

$113.19

To make a profit, Yvonne knows that her prime cost of producing a hand-knit sweater must be no more than $24.00. The wholesale yarn and knitting needles to make two sweaters cost $20.00. What can Yvonne afford to spend on direct labor costs?

$14.00 per sweater

Trainer's Pet Store offers a wide variety of leashes for dogs. The store purchases a popular leash from its manufacturer for $4.38 each. Trainer's Pets marks up the leashes at a rate of 238% of cost. What is the retail price of the popular leash?

$14.80

Nakesha Sporting Goods operates on a 45% overhead based on the selling price, which results in an overhead of $65.34 on the newest version of an air hockey game set. Find the selling price.

$145.20

Total sales of Jewelry Inc. were $12,000,000 two years ago and $13,400,000 last year. If the same trend continues, what are sales likely to be this year to the nearest hundred thousand dollars? (Hint: First find the percent increase.)

$15,000,000

Big Box Electronics sells a television set and DVD player unit for $545.45. Its cost on the unit is $372.72. What is the markup?

$172.73

After Frances George's semi-annual performance review, she received a merit increase of 4.75% and a COLA of 3.25%. She now earns $20.01 an hour. What was her hourly wage, to the nearest cent, before the merit and COLA increases? Express your answer in dollars and cents.

$18.53

The list price of a stove is $278. The chain discount is 20/15. What is the final net price?

$189.04

A textbook in the college bookstore had an original price of $185.50. Since then the inflation rate has been 4%. Find the current price of the book.

$192.92

Vacation Property Rentals purchased 50 television sets for their rental units at a cost of $250 per television. The televisions have an estimated life of 5 years and a salvage value of $40 per set. What is the book value of all of the televisions at the end of the fifth year?

$2,000

Bettina Soto is a regional sales representative for a pharmaceuticals company. This month her travel expenses include $884.03 for car rental and gasoline, and $219.40 for meals. Her hotel bills include two nights at the Resort Hotels for $175 per night, one night at the Suites for $85.90, and four nights at the East Inn for $119.90 per night. What are Bettina's total travel expenses for the month?

$2,018.93

After working 10 years as a bus driver, Izabel Antocicco was in an accident and became permanently disabled. She was 63 years old at the time and was planning to retire on her 65th birthday. Her final salary was $55,700 per year. Her rate of benefits was 4.5%. What is her monthly disability benefit?

$2,506.50

A network charges $855,000 for a 30-second ad during a major televised sports event. The advertisers must purchase a minimum of three ads during the broadcast. If an advertiser buys the smallest number of ads possible, what is the advertiser's total cost?

$2,565,000

Kalila Winston worked for a software company for 26 years. She became permanently disabled and could no longer keep her job. She was 52 years old and had planned to work until she was 62. Her final annual salary was $43,000. Her rate of benefits is 2%. What is Kalila's monthly disability benefit to the nearest dollar?

$2,580

Framingham Company wants to finance its expansion by selling 200,000 shares of stock at $35.20 each. The underwriting commission will be 5.5 percent of the value of the stock. Accounting, legal, and printing fees are $142,985. Find the cost per share of the total expenses.

$2.65

The owner of a large manufacturing plant pays the base rate of $11.24 per $100 in wages paid for workers' compensation insurance. The payroll for September is $179,805. What is the month's premium for the workers' compensation insurance?

$20,210.08

Filine's fixed costs of manufacturing a run of 800 belt buckles is $20,000, while the average variable cost is $0.70 per belt buckle. What are the total costs of manufacturing a run of belt buckles?

$20,560

The Country Times offers a 20% discount on a Saturday ad that also runs on Sunday. The local department store contracts for a ¼ page ad to run every Saturday and Sunday for the remainder of the year (16 weeks). How much will the department store pay for the ads?

$20,640

Chris Nazarro had total travel expenses of $872. His transportation cost was $136. The hotel cost was $210 and business materials cost $500. If his lunch cost 30% of his dinner, how much was dinner to the nearest cent?

$20.00

The County Mental Health Center is looking for a Facility Director. It has budgeted $20,000 for recruiting costs. The Center spent $5,300 on advertising and $3,500 on interviewing. The Center is willing to pay 5.5% commission on selling the new director's home. What is the maximum selling price the Center would pay 5.5% commission on to stay within budget?

$203,636.36

Cory Yip is a customer service agent, Level 1, for Marcom & Associates. He received a 2.5% cost-of-living adjustment and a merit increase of 4%. What is Cory's new salary?

$21,300

Lansing Bookery regularly marks up books 40% of the selling price. The bookstore's cost on a new best-selling book is $12.95 per book. What is the selling price of this book?

$21.58

A new cereal will be advertised in 30-second spots during a morning TV show for children. The ad will run over the next 60 days. One ad will appear on each of 3 shows each day. Daytime advertising rates are $1,200 per 30-second spot. How much will the campaign cost?

$216,000

A gift-boxed silver pen set can be purchased at Ramirez Jewelers for $59.99. It costs Ramirez Jewelers $27.56 to create each set. Additionally, the overhead rate is 17% of the selling price. What is Ramirez's net profit on a pen set?

$22.23

Gaitan Lee sells imported cabinets for $489.50 each. What is the highest price Gaitan can pay for the cabinets and make a markup of 55% of the selling price?

$220.28

The Smith-Hart Company is searching for a person to head its accounting department. The personnel department placed advertisements for a total cost of $5,902. The company's cost to interview candidates is $17,800. The hiring expenses totaled $800. What is the total recruiting cost?

$24,502

What is the final net price of a designer swimsuit, originally priced at $85, when the Fall discounts are 25/60? (Hint: Find the complements of 25% and 60% and multiply by the original price.)

$25.50

Third Federal Bank is in a national search for a new Director of Human Resources. The recruiting budget is $30,000. So far, the bank has spent $8,600 on advertising and $7,650 on interviewing. The bank is willing to pay a 5.5% commission to a broker for selling the new director's home. What is the maximum selling price on which the bank would pay 5.5% commission and stay within its budget? Express your answer in dollars and cents.

$250,000

Susan Pollack had worked at Carl's Garage as a receptionist for 22 years when she became permanently disabled. She was 55 years old at the time and had planned to retire at age 60. Her final average salary was $48,600 a year. Her rate of benefits is 2%. What is her annual disability benefit?

$26,244

This is an incomplete income statement for Boston Computer Company. What is the gross profit on sales?

$26,647.97

Sarah Barnard writes a monthly column for City Magazine. Her salary is $25,000. Next month she will receive a yearly cost-of-living adjustment of 2.8%. She is also expecting a merit increase of 5%. What will Sarah's annual salary be next year to the nearest dollar?

$26,950

Lightbulbs Etc. uses the FIFO method to find the cost of goods sold and the value of the ending inventory. The table records the number of units received in the month of June. On June 30th, they sold 128 energy-saving bulbs. What was the cost of goods sold?

$265.85

What is the net price of a vacuum cleaner originally priced at $185, when the discounts are 25/80?

$27.75

The list price of glue is $34.00 while the trade-discount rate is 18%. Find the net price to the nearest cent, using the complement method.

$27.88

A weekly newspaper charges $72 for each inch in length and one column width. What is the cost of an ad that runs 2 column inches long and 2 columns wide?

$288

Household Goods Company buys hand-held mixers from the manufacturer for $17.98. The company marks up all items in the store by 40% of the selling price. What is the selling price for the mixers?

$29.97

Akil Baker manages operations for three divisions within his company, requiring that he travel to three different cities every month. This month his expenses include $2,309.75 for transportation, $239.65 for meals, and $650.00 for lodging. What are his total travel expenses for the month?

$3,199.40

Last month, Sunglass Kiosk had total sales of $9,720. Merchandise totaling $110 was returned. The goods that were sold cost Sunglass Kiosk $4,864. Operating expenses for the month were $1,180. What is the net income Sunglasss Kiosk will put on its income statement?

$3,566

An ad during a radio program is $125 per day. What would it cost an advertiser for one ad daily during the month of December?

$3,875

Dr. Raoul Caullier, owner of Software Solving Inc., determines that he must mark up the software he sells to clients by 60% of the selling price. Raoul's costs with a local bank are $1,200,000. What selling price should Raoul put in the contract with the bank?

$300,000,000

Jamison Foundry wants to stick to its recruiting budget for the position of Manager of Operations to $80,000 or less. So far, the company has spent $9,500 on advertising and $52,310 on interviewing. The company will pay 6% commission on selling the new manager's home. What is the maximum selling price of a house that the Foundry would pay 6% commission on and stay within its budget?

$303,166.67

Sherese Wallace is the owner of Buckley's Sandwich Shop. The base rate for the state's workers' compensation insurance is $2.70 per $100 paid in wages. The monthly payroll is $11,450. What is the monthly premium for workers' compensation?

$309.15

An electric razor costs Del Pharmacy $54.39. Its selling price is $108.98. The overhead included in the price totals $22.85. What is Del Pharmacy's net profit on the razor?

$31.74

Narwhal Glass repairs and replaces automotive windshields. The company buys windshields for some models of passenger cars from the manufacturer for $143.17. Narwhal Glass then marks up the windshields 135% of cost. What is selling price of the windshields?

$336.45

According to this line of best fit, what is the best estimate of projected sales in thousands of dollars for 2015?

$34,000

This is part of an invoice that The Chair Specialists received for a shipment of chairs. What is the cash discount if the bill is paid within 10 days?

$34.37

Emily Penn sells for Maumere Electronics. She is paid a base salary of $300 and 7% of all sales. One week she had sales of $7,280. If Emily's rate of commission is increased to 7.5%, but her base remains the same, how much more will she earn in a week in which she had sales of $7,280?

$36.40

David Howell was shopping for a leather jacket. He found one at the department store that was selling for $395. He learned that an inflation rate of 4.5% has occurred since the jacket was originally priced. What was the original price of the jacket?

$377.99

Roberta Wagner drove to Westfield to visit a client. She drove 86 miles round-trip. The company will reimburse her $0.29 per mile, plus $8.25 for tolls. Her meal expenses included $45.00 for breakfast and lunch, and $175.00 for dinner with her client. Other expenses included $125.98 for one night in a hotel. What are the total travel expenses for the trip that will be reimbursed?

$379.17

Booksellers' Warehouse sold 2,200,000 shares of stock at $18.90 per share. The investment banker's commission was 6% of the value of the stock. The other expenses were 2% of the value of the stock. What were Booksellers' net proceeds?

$38,253,600

Brian Gray Foods sold 1,200 shares of company stock and paid a broker $0.03 per share underwriting commission. The total proceeds before paying commission were $45,876.00. To the nearest cent, how much money did Brian Gray Foods raise per share of stock? (Hint: Subtract commission from the proceeds.)

$38.20

Jason Rhodes travels for company business. This month Mr. Rhodes traveled to Bulgaria to make a special presentation. His round-trip airfare was $3,100.40 and his ground transportation to and from the airport totaled $164.00. His hotel room was $195 per night for five nights. Meals were included at the presentation. He paid $11.00 for two meals at the airport. What were Jason's total travel expenses for the trip?

$4,261.40

If markup is $8.95 and the overhead is $4.31, find the net profit.

$4.64

Records in this table for Big-Big Foods show the opening balance and the receipts for packages of hot dog buns in November. At the end of the month, 31 packages of buns were on hand. What is the value of the ending inventory using the average-cost method? Round to the nearest cent.

$40.61

Lastima Nelson, Inc. is recruiting a new Chief Financial Officer (CFO). The recruiting budget is $44,000. Lastima has spent $10,000 on advertising and $8,500 on interviewing. The company is willing to pay 6% commission to a broker for selling the new CFO's home. What is the maximum selling price on which the company would pay 6% commission and stay within its budget?

$425,000.00

A Florida law firm hired an attorney. Advertising expenses totaled $13,500 and interviewing expenses, including travel for two of the candidates, totaled $1,450. They selected Patrice La Vine. Hiring expenses included $4,500 in moving costs and a 7% realtor's fee on the selling price of Patrice's home. The home sold for $345,980. What was the total recruiting cost?

$43,668.60

Karli produces organic cheese from milk supplied by an organic dairy. Karli pays an average of $8.00 for 10 gallons of the organic milk. The direct labor charge of her helper who converts the milk to cheese is $13.00 an hour. Her helper prepares a 5-pound wheel of cheese from 5 gallons of milk, working about 3 hours over several days. To the nearest cent, what is Karli's prime cost of manufacturing a wheel of cheese?

$43.00

Jackson Banks is a shift manager, Level 3, for Marcom & Associates. He received a 3% cost-of-living adjustment and a merit increase of 10%. What is Jackson's new salary?

$44,070

What is the final net price of a coat, originally priced at $300, when the spring discounts are 25/80?

$45

A year ago, when Delmar Harris started his job as an accounting clerk at Wright Way Enterprises, his salary was $38,500. This week he received a cost-of-living adjustment of 2.4% and a merit increase of 15.0%. How will Delmar's annual salary be next year? Round to the nearest dollar.

$45,199

A university was looking for a new athletic director. Advertising expenses totaled $15,500. Interviewing expenses, including travel for three of the candidates, totaled $8,987. The university selected Andrea Formosa. Hiring expenses included $5,000 in moving expenses and a 6% realtor's fee on the selling price of Andrea's home. The home sold for $275,130. What is the total recruiting cost?

$45,994.80

Sunglass World marks up its designer sunglasses 220%. The manufacturer charged Sunglass World $14.33 for a specific brand and model. What is the selling price of that pair of sunglasses at Sunglass World?

$45.86

Feng-Lin Fong had worked at the University Medical Center for 20 years when she became permanently disabled. She could not continue to work. Fong was 55 years old and had planned to retire at age 65. Her final average annual salary was $76,908. Her employer's rate of benefits is 2%. What is her annual disability benefit?

$46,144.80

What are the net sales? (This is line (a) on the income statement.)

$46,914

Valeria Barnes earns an annual gross pay of $42,000. She gets $14,000 in total benefits. What is the rate of her benefits?

33.3%

Last month Nicoletta Baxter traveled to France to attend a company-wide retreat. Her round trip airfare was $2,898.65 and her ground transportation to and from the retreat location totaled $362.13. Her lodging was $310 per night for 6 nights. With the exception of breakfast, her meals were provided at no charge. She paid $6.90 for breakfast each day for seven days. What were Nicoletta's total travel expenses for the trip?

$5,169.08

Sales of a granola bar increased an average of 15% per year over the past six years. This year's sales of granola bars were $4,500,000. Based on this trend, what might the sales be next year? (Hint: Add the forecast of sales increase to current sales.)

$5,175,000

According to the line of best fit, what are the projected sales for 2013?

$5.8 million

George Ficus is a retailer who has a line of men's dress shirts that sell for $89.50 each. What is the highest price George can pay for the shirts and make a markup of 44% of the selling price?

$50.12

The Kitchen Kompany operates on a 145% markup rate based on the cost. The markup on the store's new line of cabinets is $300 per cabinet. Find the selling price of one cabinet. (Hint: Find the cost first.)

$506.90

Appliances & Wares uses the average-cost valuation method to value its inventory of toasters. On May 31 Appliances & Wares had 23 toasters on hand. What is the ending inventory value for May?

$509.45

Maldo Geronimo conducts two-day training sessions for an oxygen equipment company. When he traveled last month, his lodging was $235 per night for two nights and breakfast and lunch were $46 per day. His total transportation expenses were $535. He has a budget of $1,200. What is the maximum he can spend on dinner each of the two nights? Express your answer in dollars and cents.

$51.50

The local feed store uses the LIFO method to find the cost of goods sold and the value of their ending inventory. As of August 31, they had 12 bird feeders on hand. What was the cost of goods sold? (Refer to the table of bird feeders.)

$512.59

Fortuna Bella is a wholesaler who buys small wool rugs from weavers with a selling price of $80. What is the most she can pay a weaver for a rug if the markup must be at least 35% of the selling price?

$52

To take advantage of a bicycle manufacturer's closeout special on bikes, Wheels Inc. borrowed $50,000 from Union Trust Bank. Union Trust Bank charged 3.21% ordinary interest over prime on the loan. The term of the loan was 175 days and the prime rate was 7.35%. What was the maturity value of the loan?

$52,566.67

An invoice dated March 28 has terms of 3/10 EOM. The net price is $540.10. The invoice is paid April 8. Find the cash price using the complement method.

$523.90

Benz and Jacobs Accounting purchased a new computer system for $3,500. The total resale value after 5 years is estimated to be $525. Using the straight-line method, Benz and Jacobs determined that the computer system would depreciate $595 per year. What is the salvage value of the system?

$525

The GDP is $59,785,000. The inflation rate is 5.4%. Find the real GDP.

$56,556,610

Tad's Bakery has 13% of the market for Summers County. The total estimated sales in the county for next year are $4,520,000. What sales volume should Tad's Bakery plan for next year to the nearest hundred dollars?

$587,600

Sally McPherson uses a van entirely for business. She trades in her van every 4 years. McPherson paid $35,000 for her van and expects to receive $11,000 for the van when she trades it in after 4 years. Using the straight-line method, what is the annual depreciation?

$6,000

The Law Office of Jones, Brown, and Smith has a gross income of $21,893,765. Deductions total $3,827,923. Find the federal corporate income tax.

$6,315,020

Drake Inc. earned $350,000 commission for selling 1.2 million shares of Enterprise International stock. The commission was 5.5% of the value of the stock. What was the value of the stock offering?

$6,363,636.36

Framingham Company wants to finance its expansion by selling 200,000 shares of stock at $35.20 each. The underwriting commission will be 5.5 percent of the value of the stock. Accounting, legal, and printing fees are $142,985. Find the net proceeds.

$6,509,815

The Human Resources Department is sending four people for two days of training on new software. The transportation cost per person is $425. The cost for breakfast and lunch is $40 per person, per day. If the budget allows $2,500 total for all four people, what can each person spend for dinner each night?

$60

For Frank Music, what is the owner's equity? Hint: Subtract the Bank Loan and the items in the last column from the sum of the remaining items (assets).

$63,263.95

Ruth Mason received a 4.3% merit increase and a 3.25% cost-of-living increase after her quarterly review. Her new weekly salary was $688.32. What was her weekly salary prior to the increases? (Enter the amount in dollars and cents.)

$640.00

Atlas Chemical Company wanted to keep its recruiting costs for the position of Chief Chemist to less than $100,000. The company spent $15,500 on advertising and $32,700 on interviewing expenses. They will pay 8% commission on selling the selected individual's home. What is the maximum selling price that Atlas would pay 8% commission on and stay within budget?

$647,500

Suppose Tom's Tunes Inc. has assets of $18,254.00 in cash, $67,099.00 in merchandise, and $15,334.00 in supplies. Liabilities are $35,000.00 owed to the bank and $568.50 owed in taxes. Find the owner's equity.

$65,118.50

Austin Family Furniture purchases recliners directly from the manufacturer for $235.00 each. The recliners are marked up 185% of cost and sold to customers. What is the selling price in dollars and cents?

$669.75

A periodical has 234,600 subscribers. For an ad that costs $5,800, what is the cost per subscriber to the nearest cent?

$.02

Debbie sells fancy apples at the farmer's market each Saturday. A dozen apples sell for $25. Debbie pays $1.75 for each apple. What is the markup on each apple?

$0.33

Don's Fishing sells fishing lures for $1.88 after marking them up 380% based on cost. What is the cost of each lure to the nearest cent to Don's Fishing?

$0.39

Sam Jordan is a project leader (salary Level 2) for EPD, Inc. He receives a 2.8% cost-of-living increase. He also receives a 2.1% merit increase. Find his new salary.

$68,185

Gibraltar Construction was granted a 1-year construction loan of $650,000 to finance the construction of an apartment complex. Gibraltar borrowed the money from Citizens Trust at an interest rate of 0.75% ordinary interest over the prime rate. What was the maturity value of the loan if the prime rate is 8.75%?

$711,750

When revenue is $225,000, what is the estimated profit?

$75,000

According to the line of best fit, what are the projected sales in millions of dollars for 2018?

$8 million

Copies On Demand recently purchased 5 new copiers at a total cost of $45,000. The salvage value of the copiers is expected to be $700 each after 5 years of use. Using the straight-line method, what is the total annual depreciation Copies on Demand can claim for the copiers?

$8,300

Nobel Appliances purchased office furniture at a cost of $16,000. The furniture has an estimated life of 10 years and has an annual depreciation of $1,500. Use the chart to find the book value at the end of the fifth year.

$8,500

Cook-n-Serve carries oven mitts that have a selling price of $13.80 per pair. Cook-n-Serve buys the mitts from a wholesaler and receives a 40% trade discount. What is the cost?

$8.28

Nermal Kumar is a senior manager for Timber Eye Industries in California. After his annual performance review, he received a merit raise of 7.25% and a cost-of-living increase of 2.2%. His annual salary after the increases was $87,609.50. What was Nermal's annual salary before the two increases took effect?

$80,045.23

ZG Jewelers purchased fashion bracelets for $38.87. This jewelry store regularly marks up fashion merchandise 52% of the selling price. What is the minimum selling price that ZG Jewelers should charge?

$80.98

The current cost of a radio is $135. The CPI for radios is 160. What was the cost of the radio in 1983?

$84.38

The Door Company produces door seals. Its 9' by 10' seal costs $480 to produce. The markup rate is 75% of cost. What is the price tag the company will put on this seal?

$840

Pricey Ice Cream has 4 stores that do 8% of the business in the county. It is estimated that next year total ice cream sales in the county will be $8,416,000. Pricey Ice Cream is adding a fifth store and expects to increase its market share by 25%. To the nearest dollar, how much can Pricey Ice Cream expect to sell next year? (Hint: First find 25% of the original market share of 8% and add that to the original market share. This is the new market share. Use the new market share to find the dollar amount of projected sales.)

$841,600

The terms are 4/10, n/30. The net price is $919.60. What is the cash price using the complement method?

$882.82

Sandista Holiday is the owner of a heavy duty truck and bus repair shop. She pays the base rate of $7.30 per $100 paid in wages for workers' compensation insurance. The payroll for November is $129,540. What is that month's premium for workers' compensation insurance to the nearest cent?

$9,456.42

This graph shows the supply and demand relationships for a toy. Quantities are per week. What is the approximate price that a new toy could command, when demand is for about 125 items a week?

$9.00

Johnson Canniver has a repair shop. He bought a used lawn mower for $35.00 from a customer. He spent $39.17 on parts to repair the mower. He also painted and polished the mower at a cost of $36.43. He was able to sell the refurbished lawn mower for $155.00. If it took 4.5 hours to do all the work, how much did he earn per hour to the nearest cent? (Hint: Find the markup on the lawn mower first.)

$9.87

Kranski's Island is an amusement park. The park is planning a TV ad campaign. It will run 30-second ads for the next 20 days on a daytime show. The park will also run 30-second ads for the next 5 days during a prime-time show. A 30-second daytime ad costs $6,200. A 30-second prime-time ad costs $165,000. What is the total ad campaign cost?

$949,000

A real estate agent sold Darlene's house so she can move to a new job. The company hiring Darlene paid the real estate agent $14,000 which is 6.5% of what the house sold for. What is the correct setup to find how much the house sold for?

($14,000 / 0.065) = selling price

If the Turner Company's total liabilities last month were $35,000, what is the percent change in total liabilities to the nearest tenth of a percent?

-14.3%

A survey showed that 14% of the people in a test market would buy a water purifier that screws onto any faucet. A total of 8,136 similar water purifiers of all brands were sold in the test market last year. Based on the survey, how many screw-on water purifiers might the manufacturer sell?

1,139

Water Systems builds and installs outdoor goldfish ponds for gardens. It has total fixed costs of $835,420. The variable cost for each pond construction is $723. The selling price of each pond is $1,200. What is the break-even point in number of ponds sold? (Reminder: You must always round up to the nearest whole unit, because you cannot sell a part of a unit no matter how small.)

1,752

GlassWorks Products manufactures mirror panels for hotels. GlassWorks manufactures 450,000 mirror panels each year to be sold to hotels at $135.00 per panel. The fixed costs are estimated to be $108,000. Variable costs are $78.00 per panel. How many panels must GlassWorks sell to break even?

1,895

Mercy Hospital surveyed 2,700 patients who were admitted to the hospital last year and stayed at least two nights. They were asked the following question: How would you rate the hospital food you were served during your recent hospital visit? The results are below. Mercy had predicted that 650 people would respond that the food was outstanding. Find the relative error. (Hint: Find the absolute error first.) Outstanding = 625 Good = 734 Fair = 822 Poor = 437 Don't know or no response = 82

4%

The invoice date is August 1. The terms are 4/10, n/30. What is the cash discount being offered? What is the last day to take the discount?

4%; August 11

The median cost to air condition a house in Florida during the summer last year was $1,870. This year the median cost to air condition the same house is $1,950. Find the rate of inflation.

4.3%

The invoice date is November 15. The terms are 4.5/20 EOM. What is the discount rate and the last day to pay in full?

4.5%; December 31

Tall Tex Electronics produced new game software. Sales of this software amounted to approximately $813,000 last year. Total market sales for electronic games of this type amounted to about $17,400,000 last year. What share of the market did Tall Tex Electronics get for this software? (Round to the nearest tenth of a percent.)

4.7%

Summerplace, an amusement park, sells purified water in plastic bottles to guests for $1.10 each. The park purchases the drinks for $0.22 each. What is the markup rate based on cost?

400%

A pair of tomato plants sells for $20.65. The cost is $7.32 each. What is the markup rate, based on cost to the nearest tenth of a percent?

41.1%

True Bounce basketballs are manufactured by General Sports. It has total fixed costs of $3,110,400.00 for producing basketballs. The variable cost per basketball is $16.47. The selling price per basketball is $23.95. What is the break-even point in number of basketballs?

415,829

These are the expense records of Samuel's Dry Cleaning and Laundry Services for the first quarter of the year. What percent of total expenses did Samuel's Dry Cleaning and Laundry Services spend on utilities, rent, and insurance during the quarter?

42.7%

Mercy Hospital surveyed 2,700 patients who were admitted to the hospital last year and stayed at least two nights. They were asked the following question: How would you rate the hospital food you were served during your recent hospital visit? The results of the survey are below. What percent of respondents thought the food was fair or poor? (Hint: Write your answer rounded to the nearest tenth like this: 16.3% .) Outstanding = 625 Good = 734 Fair = 822 Poor = 437 Don't know or no response = 82

46.6%

LC Motor Sales conducted a survey to find out why people who bought cars at the dealership did not use it for ongoing service. The following responses were collected. The marketing director for LC Motor Sales predicted that the number of customers who felt the location was not convenient would be 25. Determine the relative error. (Hint: Find the absolute error first.) moved away = 42 responses dislike the quality of service at LC Motors = 23 responses service charges are too high at LC Motors = 102 responses the service department is too crowded = 124 responses the location is not convenient = 17 responses other reasons = 26 responses

47.06%

These are the expense records of Fishers' Commercial Bakery for the second quarter of the year. What percent of total expenses did Fishers' Commercial Bakery spend on insurance during the quarter?

1.59%

Thors Retail purchases the items shown from Thors Wholesalers. Find the trade-discount rate of the peat moss.

10%

Peter Dickson is a buyer for a small appliance store. He purchased small coffee grinders for $9.74 each. They were marked to sell for $19.48 each. What was the markup rate based on cost to the nearest tenth of a percent?

100%

Mike Albers works during the summer at his uncle's produce stand. Tomatoes are priced at $1.99 per pound. Mike's uncle estimates that his total cost in producing and transporting the tomatoes is about $0.95 per pound. What is the markup rate based on cost for the tomatoes?

109.5%

A food court at a mall had 750 teenagers test Tasty, a new fruit snack. Of these teenagers, 267 said they would buy Tasty if it was sold at the mall. Gooey Candy Company, the manufacturer of Tasty, estimates that 32,000,000 teenagers regularly go to malls. They also estimate that teenagers would buy Tasty once a week. What is the weekly sales potential?

11,392,000 teens

Georgia Preserves is test marketing a new peach-orange marmalade. The following responses were collected from 500 people who were offered samples of the new product at a shopping mall. What percent do not like the product? "I love it! Where can I buy it today?" = 127 responses "I'll probably try it over the next year, sometime." = 162 responses "I'll probably try it, but only if I have a discount coupon." = 153 responses "I don't like this marmalade." = 58 responses

12%

What is the final discount rate when Findley's Department store discounts all pants 30/40?

12%

Damon's Shoes did a time study of Walter Holmes' job as the shipping and receiving clerk. What was Walter's average time to compute the cost of postage, to the nearest tenth of a second?

12.6 seconds

At the outdoor market, Craig Wang sells string beans for $1.99 a pound. The beans cost $0.89 a pound to grow. What is the markup rate based on cost, to the nearest tenth of a percent?

123.6%

Farm Supply's rural mailboxes has fixed costs of $192,827.00. The selling price of a mailbox is $39.99. The average variable cost of producing a mailbox is $25.43. What is the break-even point in units?

13,244

A hot dog and hamburger franchise in Central City sold 21,526 hot dogs and 35,423 hamburgers last year. The total market for Central City was 152,345 hot dogs and 280,344 hamburgers. What market share of hot dogs and hamburgers combined did the franchise capture last year? (Round to the nearest tenth of a percent.)

13.2%

Sandic Manufacturing builds wall mounts for plasma televisions. It has total fixed costs of $2,650,000. The variable cost per mount is $21.30. The selling price per mount is $39.60. What is the break-even point in number of television mounts?

144,809

Two passenger car models manufactured by Ellis Motor Company are the Leopard and the Gazelle. Last year 528,000 Leopards were sold and 432,000 Gazelles were sold. The total number of passenger cars that were sold last year amounted to 6,400,000. What combined market share can Ellis claim for these two models?

15%

What is the net-price rate of a vacuum cleaner, originally priced at $185, when the discounts are 25/80?

15%

WT Sports Store sells approximately 135 outdoor gas grills annually. In the same town, all outlets for gas grills sell approximately 850 annually. What market share does WT Sports have for gas grills in this town?

15.9%

The current cost of a blender is $45. The cost in 1983 was $28. What is the CPI for the blender?

160.7

Longwood Photo and Hobby sold $465,000 worth of digital cameras last year. The total market for these cameras was $2,560,000. What market share did Longwood's command? (Round to the nearest tenth of a percent.)

18.2%

TenCo's junior tennis rackets has fixed costs of $740,000.00. The selling price per racket is $77.59. The variable cost per racket is $39.72. What is the break-even point in units?

19,541

A company's total assets are $98,000 and total liabilities are $49,000. Find the current ratio.

2.0

Find the current ratio to the nearest tenth. - Feld Financial Corporation April 30

2.2

Find the current ratio to the nearest tenth. - Balance Sheet The Turner Company May 21

2.9

The list price of kitchen cabinet knobs is $3.00. The net price to the retailer is $2.40. What is the trade-discount rate?

20%

Thors Retail purchases the items shown from Thors Wholesalers. Find the trade-discount rate of lighter fluid.

20%

A candy store owner pays $0.05 for each stick of bubble gum. He sells each stick of gum for $0.15. If he made $20 last month on bubble gum, how many sticks of gum did he sell?

200 sticks of gum

Marcia Gibson is an accounting clerk with an annual salary of $22,500. Her benefits include $834 for vacation, $1,300 for health insurance, $1,035 for unemployment insurance, $1,395 for Social Security, and $326 for Medicare. What is the rate of her benefits?

21.7%

Beach Supply Company sells about 1.4 million beach umbrellas per year. The total annual sales of beach umbrellas in the entire market are 6.2 million. What is Beach Supply's share of the market, rounded to the nearest tenth of a percent?

22.6%

The inventory record for the Affiliated Lumber Company shows the status of 4-by-8 sheets of wallboard. What was the opening balance at the beginning of April?

230

Thors Retail purchases the items shown from Thors Wholesalers. Find the trade-discount rate of the charcoal.

25%

A playing ball was recalled for having traces of lead paint on its surface. The year before the recall, the manufacturer sold 47,237 balls. The manufacturing process was changed and the ball has been reissued. The manufacturer expects sales to be only 55% of what they were. What is the manufacturer's sales forecast for the coming year?

25,980

Davinci Digital Media's wholesale price to the retailer for a digital video camcorder is $1,399.99. Manufacturing costs include $360.00 for production wages and benefits. Production wages and benefits are what percent of the wholesale price to the retailer?

25.7%

On December 1, Jonas Jewelry Wholesale Center started with an inventory of 1,000 watches. Shipments of 168, 231, and 411 were sent out on January 3, February 8, and March 7, respectively. Receipts of 21, 145, and 11 were received on January 8, February 22, and March 18. Find the number of watches on hand as of March 18.

267

The Fineman Company conducted a time study of an installation job. The installers took anywhere from 2½ hours to 4 hours to complete the task. The Fineman Company pays its installers $14.50 an hour. The company also pays $70 per unit in direct material costs. It wants to spend no more than $113.50 in prime costs. What is the longest time an installer should spend on the task?

3 hours

The current cost of a typical desktop computer is $745. The cost in year 1983 was $1,445 with fewer capabilities. What is the CPI for the desktop computer?

51.6

Lenses Inc. recently introduced SeeLites, a thinner lens for eyeglasses. Of a sample of 800 eyeglass wearers, 246 said they would purchase their next pair of eyeglasses with the new lenses. Lenses Inc. estimates that the number of people who purchase eyeglasses in a year is 1,700,000. Most eyeglass wearers buy one new pair of eyeglasses each year. What is the annual sales potential (number of potential buyers) for the new lenses?

522,750

The Alumni Association plans to produce and market monogrammed sweatshirts. It anticipates selling each sweatshirt for $49.95. The variable costs per sweatshirt are $18.20 for materials plus $20.00 for direct labor. The fixed costs of the operation total $6,450,000. How many monogrammed sweatshirts must the Alumni Association sell to break even? (Round your answer up to the nearest whole.)

548,937

Georgia Preserves is test marketing a new peach-orange marmalade. The following responses were collected from 500 people who were offered samples of the new product at a shopping mall. If the company does not issue a discount coupon, what percent of respondents are most likely to buy this product between the present time and next year? "I love it! Where can I buy it today?" = 127 responses "I'll probably try it over the next year, sometime." = 162 responses "I'll probably try it, but only if I have a discount coupon." = 153 responses "I don't like this marmalade." = 58 responses

58%

These are the expense records of Fishers' Commercial Bakery for the second quarter of the year. To the nearest whole percent, what percent of total expenses did Fishers' Commercial Bakery spend on the most costly expense on this list?

65%

Fiona's Outlet buys carpenter jeans for $15.20 per pair. The outlet marks up each pair of jeans $10.00. What is the markup rate based on cost, rounded to the nearest tenth of a percent?

65.8%

The list price of a food processor is $490. The chain discount is 20% less 10%. What is the net-price rate?

72%

Wakena Tires sells approximately 3,760,000 car tires and 1,200,000 truck tires each year. About 47,000,000 car tires and 26,000,000 truck tires are sold each year in the United States. What is Wakena's market share in each of these two markets (cars and trucks)?

8% car and 4.6% truck

Which of the following are important to consider when approximating overhead or operating expenses? (Select all that apply.)

A percent of the wages of the employees who are invovled with production, Taxes, Rent, Electric Bill

A group of people who test a product or respond to an opinion survey are called ________.

A sample

The demand relationship is a direct relationship between the demand for and the price of an item.

False

If your gross profit is greater than your total operating expenses, your income statement will show net ______. (Enter one word.)

Income

Another term for take-home pay is _______ pay.

Net

Suppose the catalog price of an item is $475 and the trade-discount rate is 15%. What is the correct setup to find net price?

Net Price = $475 * 85%

A wholesaler buys jewelry directly from jewelers. He wants to sell a charm bracelet to retailers for $45 and earn a markup of 18%. What is the most the wholesaler can pay the jeweler for the bracelet and still get his desired markup?

Not: $54.87

The Mercury Electric Company issued 2,000,000 shares of stock at $62.50 per share. These selling expenses are deducted: commissions 4%, legal fees $2,255,500, advertising $450,000, printing costs $324,400, and accounting fees $386,000. Find the selling expense per share to the nearest cent.

Not: $8,415,900