2001 Business CalculationsPage 1
1)Jamie listed the following items on a sales invoice for a wholesale customer: 2 ¼ pks. of colored ink cartridges at $41.00 a pk., 3 2/3 pks. of floppy disks at $9.99 a pk., 3 cartons of colored printer paper at $26.66 a pk. What was the invoice total? / a) $178.84 / b) $168.59 / c) $160.64 / d) $208.86 / e)$208.982)The partnership of Faircloth, Jones, and Mahoney was formed in May. The partners agreed to a split of 30%, 50%, 20% in the order of the partner’s names. In the first month of operation, the net income was $3,600. What is the amount that Faircloth would receive? / a) $1,800 / b) $1,080 / c) $1,008 / d) $ 936 / e) $1,200
3)Jennifer and Carmen are working on a team project involving buying and selling of stock. They purchased the following stock: 10 shares of Dell at 42 ½, 5 shares of Micron Technology at 65 ¾, 2 shares of Intel at 70 ¾. They paid a brokerage fee of 5%. What was the total cost of the entire transaction? / a) $859.25 / b) $895.25 / c) $940.01 / d) $894.25
4)1/5 of $25,000 is ______. / a) $2,500 / b) $2,550 / c) $5,000 / d) $5,500 / e) $1,500
5)The decimal equivalent of 2/6 rounded to the hundredths is ______. / a) .334 / b) .33 / c) .34 / d) .67 / e) .6
6)If assets = liabilities + capital, and assets are $76,000 with liabilities of $22,000, how much is capital? / a) $98,000 / b) $89,000 / c) $54,000 / d) $67,000 / e) $55,800
7)It is customary to leave a minimum 15% tip on your total bill in restaurants. If your total bill is $22, how much tip should you leave? / a) $3.30 / b) $3.00 / c) $1.50 / d) $2.20 / e) $2.75
8)Figure the tax on your hotel bill. The daily rate is $90. You stay for 2 nights. The tax rate is 17% of which 4% is a state tax from which you are exempt. What is the total you owe when checking out? / a) $203.40 / b) $201.60 / c) $203.83 / d) $203.82 / e) $210.60
9)A DVD player is on sale for $499. Sales tax on the player is 8.25%. Delivery and installation charges are $79. You decide to take it with you and install it yourself. If you pay 20% down on the total of the entire purchase, how much is the down payment? / a) $108.03 / b) $269.35 / c) $ 99.80 / d) $547.56 / e) $108.34
10)Ricardo bought a navy blazer for $99. The blazer was marked down from $139. What was the percentage of markdown rounded to the nearest tenth. / a) 28.8% / b) 28.7% / c) 71.2% / d) 71.3% / e) 17.35%
11)Change .045 to a percent. / a) .45% / b) 4.5% / c) .0045% / d) 45% / e) 450%
12)Round 3,765,632,221.25 to the nearest thousand. / a) 3,800,000,000 / b) 3,760,000,000 / c) 3,765,632,331 / d) 3,765,632,000 / e) 3,765,633,000
13)Change 2/5 to a decimal. / a) .4 / b) .004 / c) .04 / d) .25 / e) .025
14)Change 7/20 to a decimal. / a) .0720 / b) .35 / c) .035 / d) .720 / e) 3.5
15)If the current Mexican peso is equivalent to 0.105519 in U. S. dollars, what would be the U. S. dollar equivalent of 36 pesos rounded to the nearest cent. / a) $3.80 / b) $38.80 / c) $3.79 / d) $38.79 / e) .03
16)Change 60/8 to a mixed fraction reduced to its simplest form. / a) 7 4/8 / b) 7 ½ / c) 7.5 / d) 8 ½ / e) 8 3/4
17)Add the following fractions: 2/112, 9/14, 10/28. Reduce your answer to the lowest terms. / a) 1 1/14 / b) 21/28 / c) 1 1/56 / d) 14/112 / e) 1 2/112
18)McDorman’s Hamburgers pays its employees on a salary scale dependent on excellent evaluations and length of time that they were an employee. Assuming the employee in question had an excellent evaluation and was employed for 16 months, use the scale to determine the gross pay for a 40-hour week.
0-6 months: $5.70; 7-9 months: $5.92; 10-12 months: $6.36; 13-15 months: $6.80; 16-18 months: $7.46 / a) $272.00 / b) $298.40 / c) $254.40 / d) $29.80 / e) $254.00
19)Irene earns $9.20 an hour. She always estimates that she will take home 80% of her gross pay. If she works 34 hours this week, how much does she estimate that she will take home? Estimate to the nearest dollar. / a) $312.80 / b) $251.00 / c) $250.00 / d) $368.00 / e) $294.00
Use the following table for the next two questions.
Many times factory workers are paid an incentive pay dependent on how many pieces they have completed. The following table is used to determine payment for the ABC Tent Factory.
Division / Standard Required / Incentive for each piece over standard
Cutting / 40 units per day / $2.15
Assembly / 25 units per day / $3.55
Finishing / 35 units per day / $6.65
20)Juan works in the Finishing Division and is guaranteed a daily rate of $71.00 a day. He worked a five-day work week and completed the following pieces: Monday, 35, Tuesday, 34, Wednesday, 38, Thursday, 40, Friday, 42. Incentives cannot be combined with a previous day’s total. What is his gross pay? / a) $355.00 / b) $448.10 / c) $404.70 / d) $454.75 / e) $387.25
21)Marie works in the Assembly Division for 8 hours each day for 4 days. She completes the following pieces: Monday, 27, Tuesday, 33, Wednesday, 39, Thursday, 25. She is guaranteed an hourly rate of $6.15 an hour. Incentives cannot be combined with a previous day’s total. / a) $294.30 / b) $196.80 / c) $302.00 / d) $211.00 / e) $282.00
22)The Sumtec workgroup all worked the following hours this week:
Monday: 8 ½ ; Tuesday: 10 ½; Wednesday: 9; Thursday: 9 ½; Friday: 13
Calculate the gross pay for one of the employees. All employees in this workgroup get paid $9.72 an hour. The company follows current compensation rules of paying time and a half for all hours worked over 40. / a) $534.60 / b) $487.50 / c) $481.14 / d) $729.00 / e) $541.89
23)Insurance premium reductions are figured based on the following information.
Age 26-30: 10%; Age 31-35: 12%; Age 36-40: 14%; Age 41-50: 16%; Age 51-60: 17%; Age 61-70: 14%
Calculate Jonathan’s premium at the age of 37 if the basic premium is $330.00. Consider that he also attended a safe driver training class for an additional 5% off his premium. / a) $283.80 / b) $269.61 / c) $267.30 / d) $260.70 / e) $255.70
24)Risinger, Smithwick, and Johnson prepays its company insurance each January for the year. If the company pays $1260.00 for the yearly policy, what is the value of the policy at the end of October? / a) $1,260 / b) $ 630 / c) $ 315 / d) $ 210 / e) Nothing
25)Wayne Moore has a homeowner’s insurance policy that he pays through an escrow account. If the insurance policy costs $432 a year, how much must be added to his escrow account monthly? / A) $432.00 / b) $ 43.20 / c) $ 46.00 / d) $ 46.20 / e) $ 36.00
26)Samuel ordered an upgrade on his computer. He owed $425 with terms of 2/10, n/30. He paid $200 within 10 days. What was his balance due after the payment? / a) $ 8.50 / b) $416.50 / c) $216.50 / d) $225.00 / e) $127.50
27)State Bank sends monthly bank statements. The City Corporation had a beginning bank statement balance of $4,301.90. They had outstanding deposits totaling $5,320.19, outstanding checks totaling $1,900.47, and a service charge of $6.90. What was the adjusted bank statement balance after reconciliation? / a) $4,301.90 / b) $4,295.00 / c) $7,721.62 / d) $7,714. / e) $9,622.09
28)Gerald started out the month with a checkbook balance of $95.01. He was paid two times this month at $974.22 and $927.09. He wrote checks totaling $1,791.47. The bank statement showed a service charge of $9.50. What was his reconciled checkbook balance? / a) $195.35 / b) $ 5.33 / c) $ 95.01 / d) $214.35 / e) ($ 5.33)
29)Snipper’s Mobile Pet Grooming budgeted Van Repair Expense of $725 for the month of May. The actual amount spent was $936. What is the variance? / a) $211 / b) ($211) / c) $725 / d) $936 / e) Zero
Use the following information to answer the next three questions.
Sarah purchased a big screen television on an installment plan. The cash price is $1,550 with a down payment required of 30%. The remainder of the payments must be made in 12 equal payments at $115.50.
30)What amount was financed? / a) $1,550.00 / b) $1,085.00 / c) $ 465.00 / d) $ 115.50 / e) $ 300.00
31)What is the total installment price? / a) $1,550 / b) $1,380 / c) $1,851 / d) $ 465 / e) $ 301
32)How much is the finance charge in dollars? / a) $465.00 / b) $301.00 / c) $115.50 / d) $725.00 / e)$550.00
33)Steve and John sign a promissory note to gain enough capital to start their Internet service provider business. The principal of the note is for $6,200. The interest rate is at 11%. The note is due in 18 months. What is the maturity value of the note? / a) $ 1,032 / b) $ 7,223 / c) $ 7,232 / d) $ 6,200 / e) $12,276
34)Andrea’s bank credit card bill is $7,267.22. In the credit agreement, she agrees to pay 2% of the unpaid balance. What is the minimum payment she must make? / a) $ 154.43 / b) $1,453.44 / c) $ 200.00 / d) $1,543.44 / e) $ 145.34
35)The president of our company has an annual salary of $72,540. What is the weekly salary? / a) $ 1,395 / b) $ 1,935 / c) $ 6,045 / d) $ 6,054 / e) $72,540
36)The selling price of a briefcase is $135 with a markdown price of $105. What is the percent of markdown rounded to the tenths? / a) 77.8% / b) 77.7% / c) 22.2% / d) 30.0% / e) 22.3%
37)Scott buys six RAM chips whose wholesale price is $17 each. The markup on each chip is 19%. What is the markup price for each chip that Scott buys? / a)$ 3.32 / b) $ 20.23 / c) $ 19.38 / d) $102.00 / e) $121.38
38)Total salary expense for the first quarter equals $37,922. If the Federal Unemployment Tax is .93% and the State Unemployment Tax is 5.3%. What is the amount of unemployment tax due at the end of the quarter? / a) $2,632.54 / b) $ 352.68 / c) $2,009.87 / d) $2,362.54 / e) $4,372.41
39)The employer sends in social security tax to the federal government at the end of each month. During the month of February, earnings for all employees totalled $18,998. If current social security rate is 9.96% and no one has reached the base amount, how much social security tax must be paid? / a) $ 1,982.20 / b) $ 1,892.20 / c) $ 1,882.24 / d) $19,007.96 / e) $ 1,981.84
40)The local chapter of FBLA has 12 boys and 18 girls. What is the ratio of boys to girls? / a) 2 to 1 / b) 2 to 5 / c) 1 to 2 / d) 4 to 9 / e) 2 to 3
41)If a 20-day promissory note is issued on January 2, what is the due date? / a) January 22 / b) January 20 / c) February 1 / d) January 21 / e) January 23
42)Tyrone is a salesperson for a car dealer. Last week he received $155.30 salary plus a commission of 1% of his total sales. His total sales were $43,001. How much was his total paycheck including bonus? / a) $585.31 / b) $586.30 / c) $155.30 / d) $430.01 / e) $161.17
43)The local school district has a tax rate of .9725% per $1,000 valuation. What would the taxes be on a house appraised at $75,500? / a) $7,293.75 / b) $ 743.24 / c) $7,342.95 / d) $ 734.24 / e) $1,000.00
The local chapter of FBLA held a candy fundraiser. The following chart was used to determine profits.
Cases Purchased / Cost Per Case / Student Owes
1 – 10 cases / $28 per case / $40 per case
11-20 cases / $26 per case / $40 per case
21 – 30 cases / $24 per case / $40 per case
31 – 40 cases / $22 per case / $40 per case
41 – 50 cases / $20 per case / $40 per case
50 + cases / $20 per case with 5 bonus cases / $40 per case
44)If the chapter has a membership of 30 students and each student sells 2 cases with the exception of 2 students who sell 3 cases, what would be the profit? / a) $2,480 / b) $1,240 / c) $1,340 / d) $1,420 / e) $1,140
45)Smythe Town High School was playing for the district basketball championship. The players shot 57 times and made 42 baskets. What percent of baskets were they not successful in making rounded to the nearest tenth? / a) 73.7% / b) 73.8% / c) 57.8% / d) 26.3% / e) 33.4%
46)Sonya Corporation is marketing a new digital camera. It will cost $129 to manufacture. The selling price will be $499. What is the percent of markup rounded to the nearest whole percent? / a) 26% / b) 52% / c) 74% / d) 100% / e) 387%
47)The company bookkeeper made deposits of $985.15, $322.11, $716.00, $400.00. The beginning checkbook balance was $1,008.88. What is the balance after the deposits were made? / a) $2,423.26 / b) $3,432.14 / c) $ 614.38 / d) $2,243.26 / e) $3,342.14
48)A farmer took his cattle to auction. He took three cows with the total weight being 1,322 pounds. If the price of beef is .82 a pound and the auctioneer’s commission is 1% of the total, what did the farmer net from the sale of the cattle? / a) $1,084.04 / b) $1,308.78 / c) $1,310.80 / d) $ 975.64 / e) $1,073.20
49)Wynona’s gross pay for the week was $400. She had deductions of $38.22 for FICA, $34.08 for FIT, $36.07 for Health Insurance and a donation to United Way for $25. What was her net pay for the week? / a) $266.63 / b) $400.00 / c) $133.37 / d) $533.37 / e) $266.36
50)If John Michael’s salary is $932 for a bi-monthly pay period, and his deductions are $266.96, what percentage is his net pay to his gross pay rounded to the tenths? / a) 28.6% / b) 71.4% / c) 26.8% / d) 74.1% / e) 71.3%
51)Entertainment Ltd. estimates its uncollectible accounts to be 1% of sales on account. If the total sales on account for January is $112,000.90, what would be the estimated uncollectible? / a) $ 1,110.00 / b) $ 1,210.01 / c) $11,200.09 / d) $ 1,120.01 / e) $ 1,120.00
52)B & D Enterprises needs the weekly average sales for each of its employees. Carrie Atkins sold the following: $555.60, $750.36, $950.52, $1,000.25, $887.75. What was her average sales for this week? / a) $ 828.90 / b) $1,000.25 / c) $ 555.60 / d) $ 882.09 / e) $ 828.73
The checking account for Silva Corporation had the following activity for the week:
Checks Deposited:$3,200.00, $1,507.00, $900.00
Payments made by check:$42.07, $99.09, $76.76, $924.03, $766.02
Electronic Funds Transfer from account:$201.03, $77.07, $98.89
Service Charge:$12.00
53)If the beginning balance was $203.20, what is the balance at the end of the week after the activities described above? / a) $10,436.02 / b) $ 3,310.04 / c) $ 3,531.38 / d) $ 4,267.22 / e) $ 3,513.24
54)If 1mile equals 1.6 in kilometers, how many kilometers is 87 miles rounded to the nearest whole number? / a) 52 / b) 139 / c) 319 / d) 208 / e) 140
55)Do-Right Furniture bought a shipment of computers desks for $395 and sold it for $799 after putting it on sale at 30% off. What was the original price before placing the desks on sale? / a) $1,141.43 / b) $ 239.70 / c) $ 293.07 / d) $1,083.70 / e) $1,001.00
56)Joseph Heileman signed a note on October 1. The principal was $10,000 at 10% interest. It was a 6-month note. Using an accrual system of accounting, how much interest should be charged to this year’s interest expense? / a) $250 / b) $500 / c) $125 / d) $750 / e) None
57)If total revenue for the fiscal period is $1,277.03 and total expenses are $844.00, what is the component percentage of expenses to revenue to the nearest tenth? / a) 33.0% / b) 97.1% / c) 22.3% / d) 66.1% / e) 57.6%
58)Walco Corporation buys 1,000 fax machines for $69 each and sells them with a 60% markup on cost. What is the retail price of one fax machine? / a) $ 110.40 / b) $ 107.64 / c) $ 41.40 / d) $ 26.60 / e) $69,000.00
59)A plotter that originally costs $3,120 is on sale for $2,750. What is the markdown percentage rounded to the nearest whole percent? / a) 12% / b) 88% / c) 15% / d) 18% / e) 81%
60)Mike participated in the bicycle travel tour to raise money for the March of Dimes. The tour took 10 days in which participants traveled the following number of miles each day: 59, 63, 47, 45, 53, 72, 77, 87, 28, 55. Using 1.6 kilometers to each mile for conversion, how many total kilometers did Mike ride? / a) 1,010 / b) 983 / c) 370 / d) 938 / e) 393
61)If annual percentage rate on the bank credit card is 21%, what is the monthly percentage rate? / a) 2.73% / b) 21% / c) 17.5% / d) 0.175% / e) 1.75%
62)Stan’s cell phone contract states that the base rate is $14.95 per month with free Sundays and 55 minutes free time on other days. His statement has a balance of $26.20, which was for 45 minutes of usage beyond the free time. How much does it cost Stan to talk per minute in which he was charged? / a) .10 / b) .15 / c) .20 / d) .25 / e) .26
63)In preparing a deposit slip, Wally used a tally sheet to summarize the bills and coins. The tally sheet contained the following: 36 $20 bills, 5 $10 bills, 17 $5 bills, 121 $1 bills, 4 fifty cent pieces, 22 quarters, 17 dimes, 45 nickels, 121 pennies. What is the total of the deposit? / a) $978.66 / b) $897.66 / c) $987.66 / d) $988.66 / e) $966.88
64)Gina’s Bakery had a net income of $1,440.76 last month. It must have a 6.2% increase in order to stay in business. What does its net income have to be this month in dollars? / a) $1,530.09 / b) $1,446.76 / c) $2,334.03 / d) $1,530.10 / e) $2,433.03
65)Mark and David decide to open a web design business. Their first purchase is a computer, which they estimate will have a useful life of 4 years. They paid $2,600 for the computer, which will have a salvage value of $400 at the end of the 4 years. If they purchased the computer on April 1 and use a straight-line method of depreciation, how much can they depreciate the computer this year? / a) $550.00 / b) $137.50 / c) $275.00 / d) $412.50 / e) Zero
66)Add the following numbers: 798.7, 465.165, 132.943, 104.456. / a) 1,501.264 / b) 1,501.26 / c) 1,501.2 / d) 1,501.2641 / e) 1,105.26
67)Solve the following problem rounded to hundredths: (324.2 / 4.3) X 314.54. / a) 23,741.85 / b) 23,771.84 / c) 23,714.84 / d) 23,714.85 / e) 23,417.85
68)Solve: 80% of _____ is 310. / a) 378.50 / b) 62.00 / c) 297.60 / d) 279.60 / e) 387.50
69)Solve: 7 is _____ percent of 19. / a) 63.16% / b) 36.84% / c) 38% / d) 16.03% / e) 63.17%
70)Fagan earned $225 on an investment that pays 4.5%. What was the amount of the investment? / a) $2,100 / b) $4,500 / c) $5,000 / d) $5,100 / e) $2,000
71)If the North Region had sales in January of $24,589 and sales in February of 27,489, what was the percentage of increase or decrease? / a) 1.21% / b) 11.79% / c) 11.97% / d) 89.5% / e) 10.5%
72)A petty cash fund of $200 was established. The petty cash clerk had the following petty cash slips in the petty cash box: 17.50, 13.20, 27.83, 14.26, 9.20, 4.76, 12.54, 32.50, 21.80. How much money would be needed to replenish the fund? / a) $153.59 / b) $110.01 / c) $ 46.41 / d) $155.39 / e) $ 64.41
73)If an item has a list price of $10,205.50 and a discount rate of 22%, what is the complement? / a) 100% / b) 78% / c) 87% / d) 22% / e) 44%
74)If an item has a list price of $1,258 and a series of discount rates at 10, 10, 5, what is the net amount? / a) $943.50 / b) $968.03 / c) $289.97 / d) $298.97 / e) $986.03
75)What would be the cash discount on an invoice total of $743.82 at 2/10, n/30? / a) Zero / b) $14.87 / c) $74.38 / d) $14.88 / e) $47.38
76)On a discounted loan of $27,370 at 12.75% for 66 days, what would be the proceeds assuming calendar year? / a) $ 631.01 / b) $ 361.01 / c) $26,738.99 / d) $26,738.10 / e) $27,638.10
77)A deposit of $5,000 is made at the beginning of a year and earns 12% interest per year. Calculate the interest earned at the end of three years if the interest is compound yearly. / a) $2,024.64 / b) $2,204.64 / c) $1,800.00 / d) $1,080.00 / e) $1,200.00
78)A CD costs $14 wholesale and has a markup based on cost of 15%. What is the selling price? / a) $ 2.10 / b) $18.20 / c) $12.80 / d) $14.00 / e) $16.10
79)A calculator sells for $32 with a markup of $20 based on selling price. What is the markup rate? / a) 38% / b) 62% / c) 26% / d) 83% / e) 63%
80)If the amount paid to workers is $4,864.40 and the amount paid by clients is $10,472.44, what is the gross margin percent? / a) 56% / b) 65% / c) 46% / d) 54% / e) 10%
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