VB Management Math

You consider organizing as a corporation, you will pay taxes at the corporate level (40% tax rate) and when dividends are distributed to owners (20% tax rate)..Instead, you organize as a partnership and pay taxes only at your personal rate (28%). Approximately, how much do you save?

24%

You own 12,000 shares of a company. The company announces a two-for-one stock split. You will wind up with two shares for every one share you own now. How many shares do you own after the split?

24000

Your union of 200 employees has an average of 13 years of experience. How many years of collective work experience do they have?

2600

Your manufacturing facility in Malaysia has 12,000 employees. Annual turnover (the percentage of employees who leave each year) is 23%. How many new employees do you need to hire each year?

2760

You are the production manager for a skateboard maker. Over the past 60 days, you've gotten orders for 500 boards, 300 boards, 700 boards, and 240 boards. What is the average daily production capacity that you need to fill these orders over 60 days?

29 boards/day

In a survey, the "sample size" is the number of people surveyed. You survey 12 adult women, 15 adult men and eight kids. What is your sample size?

35

Your employees have an average salary of $37,000 per year. Their benefits, health insurance and a retirement plan, are worth $22,000 per year. What percentage of their total compensation (salary plus benefits) is benefits? (Round to the nearest percent.)

37%

In 2015, your company had revenue of $78,524. In 2014, revenue was $56,976. What is the growth rate of your company?

38%

You plan to lease a building for your business. The building owner wants first month's rent, last month's rent, and a security deposit of one month's rent -- all due at the lease signing. If R represents one month's rent, which formula shows the amount you will need at the lease signing?

3R

To start your business, you take out a loan for $200,000. You figure the business can generate $50,000 per year toward loan payments. How long will it take you to pay off the loan? (Ignore interest.)

4 years

Of your employees, 60% are happy with work conditions and 50% are happy with pay, and 20% are happy with both. What percent are happy with work conditions but not pay?

40%

You price a product at $100. Its cost you $60 to make. What is your percentage margin?

40%

A machine has throughput of 12 pieces an hour. What is the machine's cycle time in minutes? Reminder: Cycle time = ( 1 / throughput) x 60 minutes/hour)

5

Currently, one of your employees must walk four minutes to get parts that he then assembles in two minutes. If you rearrange stockpiles to cut his walking time to two minutes, how much more can he produce?

50%

You have five identical pieces of equipment. There is a 1 in 10 chance that each piece will fail in a year. What is the likelihood that NONE of the pieces fail during a year?

59%

A company has 450,000 shares of stock outstanding. You own 25,000 of those shares. What is your percentage ownership of the company? (Round to the nearest percent.)

6%

You have a machine which can paint 20 bikes per hour. You purchase two additional, identical machines. How many bikes can you now paint per hour?

60

You've read an article that suggests that for every employee who expresses a complaint, there are 6 MORE with the same issue who remain silent. If you have 100 employees and receive 9 complaints, what percentage of your employees have the complaint? (Assume you believe the author of the article.)

63%

You have a popular product. You decide to set its price at 3 times cost. What is your percentage margin on the product?

67%

You have leased production space that is 300 ft x 230 ft. How many square feet do you have?

69000

Last month, you made a profit of $3,186. Your revenue for that month was $42,364. What was your profit as a percentage of revenue. (Round to the nearest percent.)

8%

To ratify a new contract, a union requires affirmative votes from two-thirds of its members. The union has 1,233 members. How many votes are required to ratify the contract?

822

An examination of your balance sheet reveals that your cash balance has declined by $20,000 per month for the last 4 months. The current cash balance is $180,000. How many months until your cash runs out if the rate of decline remains the same?

9 months

You negotiate a new contract that raises wages from $32/hour to $35/hour. What is the percentage increase in wages? (Round to the nearest percent.)

9%

A metal stamping machine can process 34 sheets of metal per hour. You have 3,128 sheets of metal to process. How many hours will it take to process all of them?

92

You have two employees. Employee A produces 10 handbags per hour while working and takes four 15-minute breaks during an eight hour day. Employee B produces 9 handbags per hour but only takes two 15-minute breaks per eight hour day. Which employee produces more handbags in a day?

Employee A

You believe you can recruit an experienced assembler for $32/hour who can assemble 8 bicycles per hour. You can also recruit a less experienced assembler for $24/hour who can assemble 4 bicycles per hour. At least in the short term, which assembler is more cost effective?

Experienced assembler

You believe that offering a training class will improve worker productivity by 20%. Currently each worker produces $60,000 worth of goods that you sell at 50% gross margin. The training costs $2,000 per employee. Is the training worth it?

Yes

You own a lacrosse stick manufacturer. You are contemplating trying to win two sizable orders. One order is for 900 sticks. The other order is for 700 sticks. Both orders must be delivered within 10 days. You can produce 225 lacrosse sticks per day. Can you take these orders and deliver both on time?

Yes

Your handbag business normally produces 70 bags per day. You have an opportunity to take on a larger order for 800 bags due in 2 weeks. There are no other orders. Can you fill the order on time if you work 7 days a week?

Yes

You have two employees who report directly to you. One is making $36,000/year and the second is making $24,000/year. You feel the second employee has done outstanding work, and you want to give her a $3,000/year raise. The company has limited you to a total increase in payroll of 5% for next year. How much of a raise can you afford to give to the first employee if you give the second employee a $3,000/year raise?

$0

You may have to pay a penalty if, during the year, you pay less than 90% of the taxes you owe for that year. If you expect to owe $12,567, how much do you need to pay during the year to avoid the penalty?

$11310.30

You are recruiting for a position that now pays $11.00 per hour. You expect that you will need to increase the pay rate by 12% to attract enough candidates. What is the new pay rate?

$12.32

You are currently paying $1,250 per year for insurance. The insurance company informs you that rates are going up 5% next year. How much will you be paying next year?

$1312.50

In 2012's Superstorm Sandy, about 500,000 insurance claims were settled for approximately $7 billion. What was the average settlement amount?

$14000

In June, you made a profit of $5,000 with revenue of $20,000. What were your total expenses?

$15000

Last year, your company had a loss (negative profit) of $10,000. You expect revenue to be the same for this year as last year. By how much do you need to reduce expenses in order to make a profit of $6,000?

$16000

You make $67,321 and pay taxes as a partnership at a rate of 25%. How much do you owe in taxes?

$16830.25

Employees often get "time and a half" for working overtime. This means 1.5 times their normal pay. If your painters normally make $12 per hour, how much would they make for working overtime at time and a half?

$18 per hour

A company-wide survey identifies two programs that would boost employee satisfaction. One program costs a flat fee of $12,000 per year; the other costs 2% of total payroll. Your total payroll is $320,000 per year. What will it cost you to implement both programs for next year?

$18400

You have insured your business property for $1 million with a deductible of $1,000. You have $200,000 worth of equipment stolen. How much will you get from the insurance company?

$199000

Monster.com is offering a "buy one, get two free" sale on recruiting ads. The ads normally cost $60 each. What will your cost per ad be with the sale?

$20 per ad

You own a backpack manufacturing company. You have assets of $465,000 and liabilities of $255,000. What is your equity?

$210000

Your company, a sole proprietorship, has assets of $34,583 and liabilities of $55,867. You decide to liquidate the company. Assuming you can sell the assets at their listed value, how much will you be personally liable for?

$21284

You plan to run a recruiting ad for six weeks. The cost of the ad is $37.50 per week. What is your total cost?

$225.00

You believe there is a 25% chance that you will experience a strike. If that strike occurs, you will lose $100,000. What is the "expected value" of your loss?

$25000

You represent a union. You expect inflation to be 3% per year for the next five years, and you want your members wages to keep up with inflation. Today, your members earn $23/hour. What will they need to earn per hour in five years to keep up with inflation? (Round to the nearest penny.)

$26.66

Your foreman makes $25 per hour. You give her a 10% raise. What is her new salary?

$27.50 per hour

Almost all union members pay dues. If a union member has $5.50 deducted from his paycheck each week for union dues, how much does he pay each year?

$286

You prepare to enter a bid. You intend to bid a price 30% over your cost of $23 per unit. What price should you bid?

$29.90

Union employees making $30 per hour want a 4% increase in their wage. What would the new wage be?

$31.20

You just received word that you lost a major bid. The customer told you that a competitor underbid you by 30%. Your bid price was $45 per unit. What did your competitor bid?

$31.50

To figure out a good price for your product, you try to estimate the full cost to make it. You know that materials cost $15. It takes two hours of labor at $10 per hour to assemble the product. What is the full cost of materials plus labor?

$35

Your business plan calls for the following monthly cash flows: -$700, -$500,-$300,+$200,+$400 as the business gets going. You start with $5,000 in cash. What is your lowest planned cash balance as you get the business off the ground?

$3500

All employers in the U.S. pay "payroll taxes" on behalf of employees. The FICA (Social Security) portion of this is 6.25% of pay. If an employee makes $600 in a week, how much does the employer contribute for FICA?

$37.50

A partnership with 7 partners distributes its profits of $280,000 equally to the partners. How much does each partner get?

$40000

An insurance company uses the following formula to set premiums at different deductibles: Premium = $500 - (Deductible / 5) What is the premium for a policy with a deductible of $400?

$420

You normally pay $40 per month for insurance, but your insurance company has offered you a 10% discount if you pay for the full year all at once. How much would the payment be?

$432

You are an insurance executive at a for-profit company. Company studies show that a particular type of business has insured losses of $400 per year on average. Which of the following is an annual premium you might reasonably charge to insure that type of company? Hint: Insurance companies want to make a profit.

$450

Union representatives are seeking a cost-of-living increase of 2% per year for their workers. Your total payroll for these union workers is $235,400 per year. What would the increase be for next year?

$4708

An online recruiting website offers listings for a fixed fee of $30 + $0.42 per word. Your listing has 43 words. How much will you pay?

$48.06

You are offering a job at a salary of $36,000 per year. Employer taxes (social security, unemployment, etc.) will add 9% to the cost of the employee and benefits will add 25%. What is your total expected annual cost to hire the employee?

$48240

Your employees, who now make $45/hour, are demanding raises of 4% per year for the next three years. How much would they be making after three years if you grant the raises?

$50.62 per hour

Your furniture-making company has a policy of increasing prices 3% per year to keep up with inflation. Last year your luxury chairs were priced at $525. How much should they be priced at this year?

$540.75

Business leases are often "triple net." This is sometimes written as NNN. It means the lease cost shown does not include property taxes, building insurance and common area maintenance. These must be paid by you separately. If the listed lease for a building is "$4,000 per month NNN" and taxes, insurance and maintenance come to $2,300 per month. What will your total monthly cost be?

$6300

Your business plan calls for utilizing a computerized lathe. The lathe costs $12,000. If you borrow the money to buy it, you will pay 6% interest per year on the borrowing. How much will the interest be in the first year?

$720

Your revenue is $4,523. Your expenses are $3,759. What is your profit?

$764

You are looking at 1,000 square feet of space in a new building. The cost is $10 per square foot per year. What will the space cost you per MONTH?

$833.33

Your Accounts Payable balance for the last three months was $976, $700, and $850. What was your average balance for the three months?

$842

You are planning to hire a welder for $45/hour. He will work the normal 1,960 hours per year. How much will you pay him in a year?

$88200

Accounting uses a "double-entry" in which the debits must equal the credits for any transaction. Debits and credits are additions or subtractions from accounts. If a transaction involves credits of $67 and $22, what must the debits sum to?

$89

Workers making $8.20 per hour are demanding a 22% raise. You are willing to give them a raise of half that size. What would their new pay be? (Round to the nearest penny.)

$9.10

You form a company with two other partners. You put in $5,000, and they each put in $3,000. You all get ownership proportional to the capital you put in. The company makes $20,000 in the first year and distributes profits in proportion to each partners ownership share. How much do you get?

$9090.90

You are required to pay quarterly estimates of the tax liability for your company. You expect the liability to be $36,450 for the full year. If you make even quarterly payments, how much will the payments be?

$9112.50

Production space in a building costs $22 per sq ft per year. You are looking at leasing a space that is 345 ft x 123 ft. What will your annual lease cost be?

$933570

You have five identical pieces of equipment. There is a 1 in 10 chance that each piece will fail in a year. What is the likelihood that ALL pieces fail in the same year?

0.001%

You are the manager of six employees, each making $500 per week. Unfortunately, your boss has told you that you must reduce your payroll by $26,000 for next year. How many jobs do you need to cut? (Assume employees are paid 52 weeks per year.)

1

You survey 125 employees and determine that 25 are extremely unhappy. As you walk the floor, you run into a random employee. What are the odds that she is extremely unhappy?

1 in 5

You own 5% of Corporation A. Corporation A owns 30% of Corporation B. What percentage of Corporation B do you own through your ownership in Corporation A?

1.5%

You have a part with material cost of $20 per unit. You can buy a new machine that will cut material waste in half (make twice as many units from the same material). The machine costs $1,000. How many units do you have to make to recover the cost of the machine?

100

There are about 127 million workers in the U.S. About 14.4 million workers belong to unions. What is the approximate percentage of workers who belong to unions?

11%

You are planning a manufacturing line with three processes. The processes will run simultaneously with parts moving from one process to the next in an assembly line manner. The cycle time (time to produce one unit) for two processes is three minutes. The cycle time for the other process is five minutes. How many units can the line produce in an hour?

12

In an anonymous survey, 2.5% of your employees say they are "ready to quit." You employee 50,000 people. How many are ready to quit?

1250

A company has the following structure. One manager for every six first-level employees. One vice president for every five managers and one president to oversee the vice presidents. The company has 90 first-level employees. What percentage of the company's employees are managers or above?

17%

You are planning a new production floor. You will need space for five manufacturing processes and four stockpiles. Each takes 100 square feet. You want space for those items and 50% open space. How much total space do you need?

1800 square feet

You offer employees 3 weeks paid vacation out of 52 weeks per year. Based on employee feedback, you'd like to offer 4 weeks. If you now have 100 employees, and productivity does not change, how many employees would you need to add to maintain your same level of production and give the extra vacation? (Round to the nearest worker.)

2

A machine has cycle time of 3 minutes per piece. What is the machine's throughput in pieces per hour? Reminder: Throughput = (1 / cycle time) x 60 minutes/hour)

20

You have a manufacturing process requiring a square area of 400 square feet. How long will the sides of the area be?

20 feet

You are starting a new division for a large company and expect to need 3,300 production workers. You will also need supervisors, and you estimate that you will need 1 supervisor for every 15 production workers. How many supervisors will you need?

220

You want to purchase inventory for 14 days of production. You typically consume 313 units per day. How much inventory should you order?

4382 units

You survey 67 employees, and 30 respond that their job satisfaction is high. What percentage of your employees have high job satisfaction?

44%

Through years of experience, you have learned that a $2,000 milling machine suffers a catastrophic failure (it is a total loss) about once in 5 years. An insurance salesman offers to sell you coverage that will replace the machine. The annual premium for the coverage is $1,800. Is this insurance a good deal?

No

Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurances costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance?

No

You own three welding machines that can each produce three bikes per hour. You have a single painting station that can paint eight bikes per hour. Which process is your bottleneck?

Painting

You can run unlimited job listings for $230 per month, or you can pay $90 per listing. You expect to run three listing this month. How should you pay?

Per month

You are looking at two rooms in your building. One is 70 ft x 30 ft. The other is 50 ft x 50 ft. Which offers more floor area?

The 50 ft x 50 ft room

You are trying to figure out the most cost effective way to paint scooters that you make. You can lease an automated machine for $2,600 per month that will paint 4,000 scooters per month. You can also hire six painters at $23 per hour who can also paint 4,000 scooters per month if they work 160 hours per month. Which is more cost effective?

The machine

You have a product that sells for $100, and costs you $60 to make. A customer normally orders 1,000 units, but will order 2,000 if you drop the price 20%. Would you make more or less on the larger order?

The same

Your company has total wages of $321,000. Your revenue is $976,000. You have just read an industry journal that suggests that wages should be approximately 25% of revenue in your industry. According to the journal article, are your wages too high or low?

Too high

In a survey, 14 of 25 men report being satisfied with their jobs. 22 of 33 women report being satisfied. Which group has a higher percentage of satisfied workers?

Women