Chap 1 Knowledge Check Answer Key
Knowledge Check 1.1
- a. $9,000 b. $66,000
- Sounders: [latex]\frac{$936,400}{$184,000}[/latex], Elecktronicks: [latex]\frac{$1,245,900}{$209,400}[/latex] (Elecktronicks is better)
Knowledge Check 1.2
1. a. Net Profit = 14% of [latex]$29,000 = 0.14\times $29,000 = $ 4,060[/latex].
b. [latex]Sales \times 0.14 =$5,000[/latex], so [latex]Sales = \frac{$5,000}{0.14} =$35,714.29[/latex]
2 a. $9.80 b. $22.40 c. $39.20
Knowledge Check 1.3
1.a. COGS = 0.65 × $ 90,000 = $58,500
| Sales | $90,000 |
| COGS | 58,500 |
| Gross Profit | 31,500 |
| Operating Expenses | 14,000 |
| Net Profit | 17,500 |
2. [latex]\text{Percent gross margin} =\frac{$31,500}{$90,000} = 0.35 = 35%[/latex]
Knowledge Check 1.4
| COST | % MARKUP | MARKUP | PRICE | |
| a. | $10.00 | 35% | $3.50 | $13.50 |
| b. | $20.00 | 45% | $9.00 | $29.00 |
| C. | $16.00 | 25% | $4.00 | $20.00 |
Knowledge Check 1.5
1. a.
[latex]\begin{align*} &200 € &=& 200 € \times \frac{$1.532}{1 € }&=&$306.40\\ &200 \text{ HKD} &=& 200 \text{ HKD} \times \frac{$0.1678}{1\text{ HKD} }&=&$33.56\\ &200¥ &=& 200 \: \yen \times \frac{$0.011648}{1¥}&=&$2.33 \end{align*}[/latex]
b.
[latex]\begin{align*} $500 &=& $500 \times \frac{1€}{$1.532}&=&326.37€\\ $500 &=& $500 \times \frac{1\;HKD}{$0.1678}&=&2,979.74\;HKD\\ $500 &=& $500 \times \frac{1\yen}{$0.011648}&=&42,925.82\yen \end{align*}[/latex]
Knowledge Check 1.6
- [latex]700(1-0.3)(1-0.25) =$ 367.50[/latex]
- Discount = [latex]349-$ 244.30 =$ 104.70[/latex]
[latex]\text{Discount Rate} =\frac{$104.70}{$349}=0.30=30%[/latex]
Knowledge Check 1.7
Before Discount: [latex]6\times $ 749 (1-0.3)(1-0.05) = $ 2,988.51[/latex]
After Discount: [latex]2,988.51(1-0.03)=$2,898.85[/latex]
Knowledge Check 1.8
- The last day you can pay off both debts is the day the fridge invoice is due: May 4. On this day, the fridge will not get a discount, but the range will be eligible for a 5% discount
- The first payment of $760 is worth a credit of:
[latex]Credit = \frac{$760}{(1-0.05)}=$800[/latex]
so the we owe [latex]$2,500-$800=$1,700[/latex] on the fridge, and [latex]$3,250(1-0.05)=$ 3,087.50[/latex] on the range, so our final payment will be:
[latex]Payment =$1,700+$3,087.50 = $4,787.50[/latex]
