Business Math - Answers Sample Test 1

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Answers Sample Exam
One

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Basics and Retailing - Sample Exam

Provide solutions to the following problems; don't just give answers.

Problem 1: (32 points total - 4 points each)

a. Convert percents to decimals:

25% = .25

3.54% = .0354

7.5% = .075

= .5% =.005

b. Convert these decimals to percents:

0.84 = 84%

0.055 = 5.5%

1.54 = 154%

0.0035 = .35%

c. 36 is what percent of 144?

P=36; R=? ; B=144
==.25=25%

d. 25 is 20% of what number?
P=RxB
P=25; R=20%; B=?
== 125

e. What is the percent increase from $ 6.49 to $20.00?
R_I=

= .21212=21.21%

f. What is the percent decrease from $6.49 to $4.49?
===.30816=30.82%

g. Find increased base when $9.60 is increased by 5.2% (R_I=.052 as decimal).
=B(1+R_I)=9.60(1.052) = 10.0992 = $10.10

h. Find decreased base when $154 is decreased by 35% (R_D = .35 as decimal).
B_D= B(1-R_D) = 154(.65) = 100.1 = $100.10
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Problem 2: (8 points)

Joe Jones of Fairview, TN bought a lawnmower at the local Wal-Mart for $564.89, including sales tax of 8.25 %. What was the "tag price" of the lawn mower (excluding sales tax)?
B_I=564.89
R_I=8.25% = .0825
B=?

B_I=B(1+R_I)
B=

= $521.84
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Problem 3: (10 points total - 5 points each)

Use the following information given in table tabular form to fine D and NP in dollars.

	%	$
D	41	(.41)(17)= 6.97
NP	59	(.59)(17)= 10.03
LP	100	17.00

	%	Fraction	$
D			= 12
NP			= 132
LP		1	144

Problem 4: (10 points) Complete the table:

Discounts	Complements	Product of Complements or Net Price Percent	Complement of Product of Complement or Equivalent Single Discount Rate
20/10/15	80/85/90	(.80)(.85)(.90) =.612	1-.612 = .388
		(.612)(354.68)= 217.06416= $217.06	(.388)(354.68)=137.61584= $137.62	$354.68
		NP	D	LP

Problem 5: (20 points total- 10 points each)

(a) Find the cost when mark on is 20% of cast and the selling price is $240.

C=?
M+20% of C +.20C
S=240
S=C+M
240=C+ .20C
240=1.20C
C= = 200

(b) Find the selling price when cost is $350 and markon is 30% of selling price.
C= 350
M=30% of S =.30S
S= ?
S=C+M
S=350 + .30S
S -.30S = 350
.70S = 350
S =

= 500

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Problem 6: (15 points) Complete the table:

Item/Symbol	Definition	Dollar Amount
NP	Net Price (given)	70.00
F/T	Freight/Transportation 10% of NP	7.00
Other	Other Cost (given)	3.00
C	Cost C=NP+F/T+Other	80.00
O	Overhead 20% of C	16.00
P	Profit 50% of C	40.00
M	Markon M=O+P	56.00
S	Selling Price S=C+M	136.00
Breakeven Price	No profit/No loss	96.00
Markdown Price	20% off	108.80

Problem 7: (5 points)
Original selling price $38 marked down to $25. Cost price is $17 and overhead is 40% of cost price. Determine profit/loss amount when sold at $25.

S =25
C=17
O= 40% of C = (.40)(17) = 6.80
M= 8 = O+P
8 =6.80 +P
1.20 = P

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