gateway to business final study guide (SIM ONLY)

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

$100

BIZCAFE: If advertising on the radio costs $40/spot and you run 5 spots per day, your weekly cost for radio advertising will be:

$1400

BIZCAFE: Firm X sold 100 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

BIZCAFE: 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

BIZCAFE: Cafe X bought 20,000 cups for $1400 when they opened for business last month. At the end of the month they has 8,000 cups left. How much did the cups add to the cost of goods sold for the month (COGS)?

$840

BIZCAFE: Servers work approximately how many hours each week?

10

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

100

BIZCAFE: The high capacity espresso maker vs. the standard maker has the potential of increasing your cups served by what percent?

160%

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

2,000

BIZCAFE: Approximately how many medium cups of coffee will make up one pound of coffee beans make?

32

BIZCAFE: 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 a 8 hour shift?

6

BIZCAFE: (TRUE OR FALSE) Deposits are made into your checking account one each week.

False

BIZCAFE: 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 do you recommend they do?

Increase advertising and promotion

BIZCAFE: (TRUE OR FALSE) Offering 2 for one 1 coupons is effectively the same as offering customers have priced coffee

TRUE

BIZCAFE: (TRUE OR FALSE) Rent is $2,000 and due the 1st of each month.

TRUE

BIZCAFE: Funds for starting up your business are coming from:

a $25,000 loan

BIZCAFE: (TRUE OR FALSE) If you do not hire servers they will automatically be hired.

false

BIZCAFE: Which of the following is a 'startup' decision which you might not be able to change?

furniture

BIZCAFE: A(n)____________ is a financial statement that provides a summary of revenue and expenses over a period of time.

income statement

BIZCAFE : When starting a business, the first step should be to:

write a business