{"id":154,"date":"2020-04-18T11:31:02","date_gmt":"2020-04-18T15:31:02","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=chapter&p=154"},"modified":"2024-10-29T15:09:58","modified_gmt":"2024-10-29T19:09:58","slug":"chapter-review-questions","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/chapter\/chapter-review-questions\/","title":{"raw":"Chapter 1 Review Questions","rendered":"Chapter 1 Review Questions"},"content":{"raw":"Click on the question number to get to the solution.<\/em>\r\n\r\nUnless otherwise stated, round the final <\/strong>answer to 2 decimal places.\u00a0\u00a0<\/em>\r\n\r\n[footnote]\r\n\r\n\r\n\r\n\r\n\r\n
October<\/strong><\/td>\r\nNovember<\/strong><\/td>\r\nDecember<\/strong><\/td>\r\n<\/tr>\r\n
a. $2,000<\/td>\r\n$9,000<\/td>\r\n$25,000<\/td>\r\n<\/tr>\r\n
b. 5.00%<\/td>\r\n15.25%<\/td>\r\n22.94%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n[\/footnote] A jewelry store's sales and expenses are given below for the months of October, November and December:\r\n
\r\n\r\n\r\n\r\n\r\n\r\n
\u00a0<\/em><\/td>\r\nOctober<\/em><\/strong><\/td>\r\nNovember<\/em><\/strong><\/td>\r\nDecember <\/em><\/strong><\/td>\r\n<\/tr>\r\n
Sales<\/td>\r\n$40,000<\/td>\r\n$59,000<\/td>\r\n$109,000<\/td>\r\n<\/tr>\r\n
Expenses (all)<\/td>\r\n$38,000<\/td>\r\n$50,000<\/td>\r\n$84,000<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n
    \r\n \t
  1. Find the profits for each<\/li>\r\n \t
  2. Find the percent net margin for each<\/li>\r\n<\/ol>\r\n \r\n\r\n[footnote]\r\n\r\n\r\n\r\n\r\n
    \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Burnaby<\/strong><\/td>\r\nDowntown<\/strong><\/td>\r\nRichmond<\/strong><\/td>\r\nSurrey<\/strong><\/td>\r\n<\/tr>\r\n
    $2,425.15<\/td>\r\n$1,781.44<\/td>\r\n$2,574.85<\/td>\r\n$3,218.56<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n[\/footnote] FST Computer Stores has decided to give a total bonus of $10,000 to its outlets. The bonus will be proportional to the monthly sales (given below) for each outlet. Find the bonus for each outlet.\r\n
    \r\n\r\n\r\n\r\n\r\n
    Outlet<\/strong><\/td>\r\nBurnaby<\/strong><\/td>\r\nDowntown<\/strong><\/td>\r\nRichmond<\/strong><\/td>\r\nSurrey<\/strong><\/td>\r\n<\/tr>\r\n
    Sales<\/td>\r\n$162,000<\/td>\r\n$119,000<\/td>\r\n$172,000<\/td>\r\n$215,000<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n \r\n\r\n[footnote]\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    \u00a0<\/strong><\/td>\r\n\u00a0<\/strong><\/td>\r\nEast<\/strong><\/td>\r\nWest<\/strong><\/td>\r\n<\/tr>\r\n
    a.<\/td>\r\nGross Profit<\/td>\r\n$8,000<\/td>\r\n$9,000<\/td>\r\n<\/tr>\r\n
    <\/td>\r\nNet Profit<\/td>\r\n$5,000<\/td>\r\n$5,000<\/td>\r\n<\/tr>\r\n
    b.<\/td>\r\nGross Margin<\/td>\r\n40%<\/td>\r\n36%<\/td>\r\n<\/tr>\r\n
    <\/td>\r\nNet Margin<\/td>\r\n25%<\/td>\r\n20%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n[\/footnote] A-Plus Appliances two branches reported the following results for a one week period:\r\n\r\n\r\n\r\n\r\n\r\n
     \r\n\r\nSales<\/td>\r\nEast<\/strong>\r\n\r\n$20,000<\/td>\r\nWest<\/strong>\r\n\r\n$25,000<\/td>\r\n<\/tr>\r\n
    COGS<\/td>\r\n12,000<\/td>\r\n16,000<\/td>\r\n<\/tr>\r\n
    Other Expenses<\/td>\r\n3,000<\/td>\r\n4,000<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n
      \r\n \t
    1. Find the gross and net profits for each branch.<\/li>\r\n \t
    2. Find the percent gross margin and percent net margin for each<\/li>\r\n<\/ol>\r\n \r\n\r\n[footnote]\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
      Sales<\/td>\r\n$730,000<\/td>\r\n<\/tr>\r\n
      COGS<\/td>\r\n452,600<\/span><\/td>\r\n<\/tr>\r\n
      Gross Profit<\/td>\r\n277,400<\/td>\r\n<\/tr>\r\n
      Operating Expenses<\/td>\r\n197,100<\/span><\/td>\r\n<\/tr>\r\n
      Net Profit<\/td>\r\n80,300<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n[\/footnote] Joan's Co. knows that, nationwide, companies in its industry earn, on average, a percent gross margin of 38% and a percent net margin of 11%.\u00a0 Joan's Co. forecasts sales of $730,000 next year. If it aims at the same profit ratio as the nationwide average, estimate Joan's cost of goods, gross profit and net profit.\r\n\r\n \r\n\r\n[footnote]\r\n
        \r\n \t
      1. $12,000,<\/li>\r\n \t
      2. 40%<\/li>\r\n \t
      3. 28.57%<\/li>\r\n<\/ol>\r\n[\/footnote] Jim's Co. sees that its competitor sells an article for $42.00. It knows that the competitor pays $30.00 for the article.\r\n
          \r\n \t
        1. What is the competitor's markup (dollar amount)?<\/li>\r\n \t
        2. What is the competitor's percent markup?<\/li>\r\n \t
        3. What is the competitor's percent gross margin?<\/li>\r\n<\/ol>\r\n \r\n\r\n[footnote]\r\n
            \r\n \t
          1. 3158 CAD = 1.00 USD<\/li>\r\n \t
          2. 0.203947 CAD = 1 Krone<\/li>\r\n \t
          3. 10,000 Krones =2,039.47 CAD<\/li>\r\n \t
          4. 500 CAD = 2,451.61 Krones<\/li>\r\n<\/ol>\r\n[\/footnote] At one time the exchange rate for the Canadian dollar was: 1 CAD = 0.76 USD\r\n\r\nFor the Danish krone the rate was: 1 krone= 0.155 (USD)\r\n
              \r\n \t
            1. Find the value of $1 USD in terms of Canadian dollars (4 decimal places).<\/li>\r\n \t
            2. Find the value of one Danish krone in terms of Canadian dollars (6 decimal places).<\/li>\r\n \t
            3. How much would it cost (in Canadian dollars) to purchase 10,000 krones (2 decimal places)?<\/li>\r\n \t
            4. How many krones can be purchased for $500 Canadian (2 decimal places)?<\/li>\r\n<\/ol>\r\n \r\n\r\n[footnote]\r\n
                \r\n \t
              1. August 16, 2018<\/li>\r\n \t
              2. $5,665.00<\/li>\r\n \t
              3. June 27, 2018<\/li>\r\n \t
              4. $163.71<\/li>\r\n \t
              5. $5501.29<\/li>\r\n<\/ol>\r\n[\/footnote] JB Appliances received an invoice which contained the following information:\r\n