Business quiz

Cafe X purchased a new espresso maker for $6,000 at the beginning of the month. If equipment is depreciated over five years, what is the first month's expense?

$100

Firm X sold 1,000 units of their product last month at a price of $500. If it costs them $300 to produce each unit, what is their gross margin for the month?

$200,000

The amount of the startup loan for the business is:

$25,000

If a new full-time employee is paid $40,000 a year, and taxes and insurance add 20% of wages to the cost, what is the total cost of the employee to the company?

$48,000

Utilities for your store will cost approximately how much per month?

$500

Based on the sales of a similar shop, how many cups can you expect to sell each day once the business is established?

1,000

Company Y thinks they can increase sales by lowering the price of their product. If they currently sell 1,000 units a month at $110, how many more units will they have to sell at $100 to get the same amount of revenue?

100

Company X has monthly fixed costs of $100,000 and a unit variable cost of $50. How many units do they have to sell at $100 to break even?

2,000

About how many pounds of coffee will you need to make 600 medium cups of coffee?

20

The basic 2-cup espresso maker (Duo) costs

3,000

A new boutique hotel has 96 rooms and needs to hire staff to clean the rooms. If a typical employee can clean a room in about half an hour, how many employees will they need each day to clean the hotel in an 8-hour shift?

6

Cafe X bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month they had 8,000 cups left. How much did the cups add to cost of goods sold (COGS) for the month?

840

Cafe X has just opened and business is slow. Prices are in line with the competition, they have advertised in the local paper, and there appears to be enough staff. What would you recommend they do?

Increase advertising and promotions

When starting a new business, the first step should be to

Write a business plan

Servers work approximately 20 hours each week

false

The productivity of your store managers will not be affected by the part-time staff

false

The store hours can be different for each day of the week.

false

A(n) _________ is a financial statement that provides a summary of revenues and expenses over a period of time.

income statement

You can run ads for any of the following EXCEPT:

loyalty program

Cash receipts are deposited in the bank daily

true