Business Math - Test 2

At the end of the summer, Walgreens advertised blow-up pools for 66% off the regular price. Jeff Jones saw a pool with a regular price of $49.99. The dollar markdown is:

($49.99 × .66 = $32.99) $32.99

J.C. Penney sells a Timex watch for $139.99 that cost $89.97. J.C. Penney's percent of markup based on the selling price is:

($50.02/$139.99 = 35.73%.) 35.73%

The complement of 35% is:

(100 - 35 = 65.) 65%

True or False: 6 1/2% in decimal equals .065.

(6 1/2% is 6.5%; the decimal in a percent value moves two positions to the left.) True

8G = 96; G equals:

(A letter next to a number represents multiplication, so divide both sides by 8.) 12

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

(Divide 900 by the complement of 40%.) $1,500

An LCD flat screen TV at Best Buy increased in price from $900 to $1,200. What was the percent of increase?

(Divide the difference between the prices by the original price: 300 divided by 900.) 33 1/3%

Joanne's Dress Shop received an invoice dated July 25 for $1,400, with terms of 2/10, 1/15, n/60. On August 8, Joanne's Dress Shop sent a partial payment of $750. The actual amount that should be credited is:

(Divide the partial payment by the complement of the discount rate; $750 divided by .99 = $757.58.) $757.58

N/8 + 6 = 58; N equals:

(First subtract 6 from both sides, and then multiply both sides by 8.) 416

Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is:

(Gap sells jeans that cost $21.00 for a selling price of $29.95. The percent of markup based on cost is $8.95/$21 = 42.62%) 42.62%

Brenda purchased a total of five computers for $3,300. She received a 20% trade discount. What did Brenda pay for the computers?

(List price = Net price/ Complement of trade discount rate) $2,640

200 days from March 3 is:

(March 3 is the 62nd day of the year; add 200 to get 262, which is September 19.) September 19

102% converted to decimal is:

(Move the decimal two places to the left to covert percent to decimal.) 1.02

The net price equivalent rate of 9/15/18 is:

(Multiply .91 by .85 by .82.) .63427

Mel Company has a net income, before taxes, of $95,000. The treasurer of the company estimates 45% of net income will have to be paid for federal and state taxes. The tax for both federal and state is:

(Multiply the net income of $95,000 by .45.) $42,750

2/10, n/30, ROG means the cash discount period ends:

(ROG means receipt after goods received.) 10 days after the goods are received

750 is what percent of 900?

(Round to nearest tenth of a percent.) (Divide 750 by 900 to get .83333, which is 83.3%.) 83.3%

A local True Value Hardware Store marks its goods up 38% on cost. If a snow blower cost True Value $400, the selling price would be:

(S = 1.38 × $400; then S = $552.) $552.00

Johnny Mac's Sporting Goods bought a baseball glove from Rawlings Sporting Goods for $66.00. They want to markup the glove 70% on selling price. What should Johnny's sell the glove for?

(Selling price = Cost/1 - Percent markup on selling price.) ($66/1 - .70 = $220) $220.00

Barnes & Noble bookstore ordered 800 art books. On verifying the order, only 160 books were actually received. The percent of the order missing was:

(Subtract 160 from 800 and divide that difference by 800.) 80%

Jane sells 8 times as many Volvos as Melissa. If the difference in their sales is 35, how many cars did Jane sell?

(The equation represented would be 8x - x = 35. Combine the unknowns to get 7x = 35, divide both sides by 7 to get × = 5, and substitute 5 in for × to get 8x = 40.) 40

Rick and Ranger sell Toyotas for Tom's Auto. Over the past year they sold 360 cars. Assuming Rick sells 5 times as many as Ranger, how many Toyotas did Ranger sell?

(The equation would be 5x + x = 360. Combine unknowns to get 6x = 360, then divide both sides by 6 to get x = 60.) 60

2/10, n/30 means the credit period is ___ days from the end of the discount period.

30 days

Calculate the breakeven point and contribution margin. Breakeven point: ___________ Fixed cost: $90,000 Contribution margin: ___________ Selling price per unit: $9.00

Breakeven point: 18,000 Contribution margin: $5

True or False: Those making partial payments are not allowed to take a cash discount.

False

Amount of trade discount equals: (what equation)

List price × trade discount rate

To convert a decimal to a percent you:

Move the decimal point two places to the right and attach a percent symbol.

The rate in the portion formula is equal to:

Portion divided by base.

C + 100 = 55; C equals:

Subtract 100 from both sides, which yields a negative number. -45

True or False: .83 in percent equals 83%

True

True or False: An equation represents a math expression of equality.

True

True or False: Breakeven point is fixed cost divided by contribution margin.

True

True or False: The selling price can be calculated if the cost and the percent markup on cost are given.

True

True or False: To convert a percent to a decimal, drop the percent sign and move the decimal point two places to the left.

True

True or False: Variables and constants are terms of mathematical expressions.

True

True or False: Whatever you do to one side of an equation, you must do to the other.

True

A letter or a symbol that represents one or more numbers is a:

Variable

Contribution margin is the :

difference between selling price (S) and variable costs (VC). This difference goes first to pay off total fixed costs (FC); when they are covered, profits (or losses) start to accumulate.

38. Contribution margin is:

revenues minus variable cost.

In the percent increase or decrease problems, the portion is:

the amount of increase or decrease