Dominic Marzetti is a machine operator at the Donovan ...



NEW YORK STATE FBLA

BUSINESS CALCULATIONS

2011

PLEASE DO NOT OPEN THIS TEST UNTIL DIRECTED TO DO SO

Test Directions

1. Complete the information requested on the answer sheet.

PRINT YOUR NAME on the “Name” line.

PRINT the name of the event, BUSINESS CALCULATIONS on the “Subject” line.

PRINT the name of your CHAPTER on the “DATE” line.

2. All answers will be recorded on the answer sheet.

Please do not write on the test booklet.

Scrap paper will be provided.

3. Read each question completely before answering. With a NO. 2 pencil, blacken in your choices completely on the answer sheet. Do not make any other marks on the answer sheet, or the scoring machine will reject it.

4. You will be given 60 minutes for the test. You will be given a starting signal and a signal after 50 minutes have elapsed.

Tie will be broken using the last 10 questions of the test.

Dominic Marzetti is a machine operator at the Donovan Manufacturing Corporations. He works 37.875 hours per week and earns $9.755 per hour. What is his straight-time pay each week?

A. $369.47

B. $369.66

C. $369.71

D. $370.88

As a case manager, Bonnie Zoltowski earns $13.47 an hour plus time and a half for weekend work. Last week she worked her regular 40 hours plus 8 hours of overtime on the weekend. What was her total pay for the week?

A. $538.80

B. $646.56

C. $700.44

D. $969.84

Jeremy Sullivan delivers newspapers for the Dispatch. He receives 14.2¢ per paper, 6 days a week (for the daily paper), and 50¢ for the Sunday paper. He delivers 124 daily papers each day and 151 Sunday papers each week. What is his total pay for the week?

A. $75.50

B. $93.11

C. $105.65

D. $181.15

A new automobile purchased by the Jones family in 1983 for $11,780 costs $45,400 today. What is the CPI for the automobile?

A. 33.3

B. 66.9

C. 200.5

D. 300.5

Maude Eggert sells cosmetics for Soft Touch, Inc. She is guaranteed a salary of $790 a month, or 7 percent of her total sales—whichever is greater. What is her gross pay for a month in which her total sales were $10,984?

A. $768.88

B. $790.00

C. $811.12

D. $1,558.88

Odessa Dilulo demonstrates home fire alarm systems. She is paid $10.00 per demonstration for the first 10 demonstrations given during a week and $15.50 for each demonstration over 10. Also, for every sale, she gets a bonus of $15.00. What is her commission for a week in which she gives 18 demonstrations and makes 6 sales?

A. $214.00

B. $224.00

C. $314.00

D. $414.00

A specified amount of money for each item of work that you complete is called

A. hourly rate

B. commission

C. piecework

D. straight-time rate

The fixed amount of money you earn on a regular basis is called

A. commission rate

B. overtime pay

C. piecework

D. salary

Erica Matthies earns $28,640 per year as a video editor. Her personal exemptions include herself and her husband. The state raised the amount per personal exemption $250 from $1,250 last year. The state tax rate in her state is 3.5 percent of taxable income. What amount is withheld yearly for state income tax?

A. $897.40

B. $91490

C. $949.90

D. $1,002.40

Bill Bernstein’s group medical insurance coverage costs $5,480 a year. The company pays 65 percent of the cost. How much is deducted each month from his paycheck for medical insurance?

A. $73.77

B. $159.83

C. $296.83

D. $191.80

Amy and Todd Irvings’ monthly expenses for June, July, and August are as follows: June, $3,260; July $3,537; and August, $3,430. Find the average monthly expenditure for the Irvings.

A. $3,049

B. $3,409

C. $3,490

D. $10,227

Lourdes and Artuaro Martinez have monthly living expenses of $915, monthly fixed expenses of $2,100, and annual variable expenses of $6,732. What is their total monthly expenditure?

A. $3,015

B. $3,576

C. $9,747

D. $42,912

The Callahan family had the following transportation costs, including train fare, car payments, gasoline, oil changes, and repairs for the months of July through December : $947, $895, $923, $851, $816, and $908. What is their average monthly expenditure for transportation costs?

A. $890

B. $980

C. $5,340

D. $5,430

Carole Winer deposits checks for $425.22, $883.99, and $57.05. She has cash consisting of 45 one-dollar bills, 15 five-dollar bills, 12 ten-dollar bills, 2 8 quarters, 16 dimes, 19 nickels, and 65 pennies. She would like to receive $60 in cash. What is her total deposit?

A. $1,366.26

B. $1,553.46

C. $1,556.46

D. $1,613.46

Teretha Kane has a balance of $73.78 in her check register. One June 1, her payroll check for $741.80 is automatically deposited in her account. On June 2, she writes a check for $291.49. On June 4, she writes a check for $52.46. What is her new balance?

A. $397.85

B. $471.63

C. $1,054.61

D. $1,014.46

Gina Valerio’s bank statement for April lists withdrawals of $58.17, $19.95, $756.60, $93.28, $106.41. What are her total withdrawals for the month?

A. $941.13

B. $1,034.41

C. $1,043.41

D. $1,014.46

Giovanni Marzano received his bank statement for June. His previous balance was $1,351.60. He wrote checks for $652.18, $24.26, $70.12, and $218.65. He made deposits of $93.88 and $250.14. What is his current balance?

A. $730.41

B. $1,972.79

C. $2,316.81

D. $2,660.83

To obtain agreement between two financial records by accounting for outstanding items is called

A. balance

B. bank statement

C. online banking

D. reconcile

Rufus Collier uses Savings and Loan online banking. Last month Collier had these charges: basic charge of $7.95, 6 service charges at $0.70 each, and $25.00 for an overdraft charge. He also had ATM fees of $2.00 for using the regional network and a cash advance fee of 2.5 percent of $400. What are the total fees?

A. $39.15

B. $45.65

C. $49.15

D. $449.15

David Rodero operates a booth during special concert events. Following each event he makes a deposit in his savings account. He has checks for $40, $50, and $35. He has cash and coins consisting of 8 fifty-dollar bills, 12 twenty-dollar bills, 12 ten-dollar bills, 8 five-dollar bills, 22 one-dollar bills, 48 quarters, 19 dimes 22 nickels, and 52 pennies. He would like to receive a hundred-dollar bill in cash. What is his total deposit?

A. $737.52

B. $837.52

C. $862.52

D. $962.52

Lewis Belmonte’s previous balance is $26,474.04. His account earns interest of $44.12. He deposits $550.43, and $197.16. What is his new balance?

A. $25,770.57

B. $27,177.51

C. $27,221.63

D. $27,265.75

On May 1 Geraldo Saldana opened a savings account that paid 3.5 percent interest at Fulton Savings Bank with a deposit of $3,600. Ten days later he deposited $3,000. Fourteen days later he deposited $5,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. How much simple interest did his money earn?

A. $18.98

B. $19.62

C. $20.10

D. $23.78

Ernie Boddy had $3,620 on deposit at Savings Bank on July 1. The money earns interest at a rate of 6.5 percent compounded quarterly. What is the amount in the account non April 1 of the following year if no deposits or withdrawals were made?

A. $3,678.83

B. $3,738.61

C. $3,799.36

D. $3,855.30

Interest earned not only on the original principal, but also on the interest earned during previous interest periods is called

A. annual interest rate

B. compound interest

C. daily compounding

D. simple interest

Alfredo Rodriguez purchases a DVD for $29.95, a dictionary for $31.50, a paperback book for $9.25, and a magazine for $5.00. What is the total sales tax if he lives in Acme, Washington, where the state tax is 6.5 percent and the city tax is 1.1 percent?

A. $.83

B. $4.09

C. $4.92

D. $5.75

Maggie Hanrahan purchases a down comforter for $149, 2 pillows for $24 each, and a wall clock for $38. The sales tax on these items is $11.75. What is the total purchase price?

A. $222.75

B. $223.25

C. $246.75

D. $284.75

Alan Kinsman sees that salsa is on sale for 3 sixteen-ounce jars for $5.99. What is the price per ounce when he buys three jars?

A. $.12

B. $.13

C. $.25

D. $.37

The Food Chain sells spearmint gum in packs containing five sticks of gum. A single pack costs $0.25, a ten-pack carton sells for $1.79, 2 ten-pack cartons sell for $3.00, and 2 twenty-pack cartons sell for $4.99. Which size is the best buy?

A. single pack

B. ten-pack carton

C. 2 ten-pack cartons

D. 2 twenty-pack cartons

Additional memory for your computer sells for $109.99 with a mail-in rebate of $10.00. What is the final price after the rebate if an envelope costs $0.25 and a postage stamp costs $0.44?

A. $99.30

B. $100.68

C. $119.30

D. $120.68

Wu Chung is buying potato chips. He notes that the following sizes are for sale: 1 ¾ ounce for $0.50, 5 ¾ ounce for $1.00, and a 2-pack of the 5 ¾ ounce for size for $1.88. Which size is the best buy?

A. 1 ¾ ounce package

B. 5 2/3 ounce package

C. 2-pack of 5 ¾ ounce

D. all are the same

Jeremy Berkowitz purchases a down jacket during an April coat sale at the Ski Shop. All coats are discounted 45 percent. The down jacket regularly sells for 154.50. What is the markdown?

A. $65.48

B. $69.53

C. $80.03

D. $84.97

The Pizza Shack discounts 15 percent off the regular selling price on the purchase of 3 or more pizzas. What is the sale price on the purchase of 3 pizzas that regularly sell for $9.75, $15.75, and $19.75?

A. $6.79

B. $38.46

C. $38.64

D. $45.25

Jessie Ardella obtained a single-payment loan of $3,225.00 to pay a repair bill. He agreed to repay the loan in 31 days at an exact interest rate of 11.75 percent. What is the maturity value of his loan?

A. $3,237.22

B. $3,256.58

C. $3,257.18

D. $3,257.63

Amy and Cliff Martin want to remodel their kitchen. They would like to finance part of the cost but do not want the amount financed to be more than $9,000. The total cost of remodeling the kitchen is $12,000. What percent of the total cost should their down payment be?

A. 25%

B. 33 1/3%

C. 50%

D. 75%

A loan that you repay in several equal payments over a specified period of time is called a

A. simple interest loan

B. annual percentage rate

C. installment loan

D. single-payment loan

Scott DuBois took out a simple interest loan of $1,800.00 for home repairs. The loan is for 12 months at 8 percent interest with a payment of $156.60. After 8 months, the balance is $615.87. What is the difference in the amount of interest paid the first month and the amount of interest paid the ninth month?

A. $4.11

B. $7.89

C. $8.78

D. $12.00

Dalton Slade is interested in a sports utility vehicle that has a base price of $31,145. Factory-installed options total $1,245. The destination charge from its assembly plant in River Rouge, Michigan, is $352. What is the sticker price for the car?

A. $29,548

B. $30,252

C. $32,038

D. $32,742

Evander Harris is ordering a luxury coupe convertible built to his specifications. The base price is $81,975 and options total $2,180. There is a destination charge of $890. The dealer’s cost is about 90 percent of the base price and 88 percent of the options price. The dealer will sell him the car for $200 more than the estimated dealer’s cost plus a 6 percent sales tax. What is the total cost of the car?

A. $76,785.90

B. $81,339.65

C. $81,393.05

D. $81,439.27

Sue Soto owns a used four-door sedan that she wants to sell so she can purchase a new vehicle. One used-vehicle guide shows that the average retail value for it is $3,900. She adds $50 for having a vinyl top, $125 for a CD player, $26 for power windows, and $25 for power locks. Soto deducts $175 for having no air-conditioning. She adds $450 for having less than the expected mileage. What is the average retail price for her vehicle?

A. $3,451

B. $3,851

C. $4,276

D. $4,401

J. I. Olmstead drove 11,400 miles in his SUV last year. His variable costs totaled $2,965.89. His fixed costs totaled $2,884.26. What was the cost per mile for him to operate his SUV?

A. $0.512

B. $0.513

C. $.0.524

D. $0.531

Homer Gill leased a vehicle for $199.00 a month for 48 months. He paid a deposit of $225.00, a title fee of $15.00, and a license fee of $60.00. The lease carried a stipulation that there would be a $0.10 per mile charge for all miles over 60,000. He drove the vehicle 68,515 miles. What is the total cost of leasing the vehicle?

A. $9,937.15

B. $10,688.5

C. $10,703.50

D. $10,730.50

Freda Rochetti rented a car for 2 days at $32.95 a day plus $0.33 a mile. She purchased collision waiver insurance for $7.50 per day. She drove 140 miles and paid $8.39 for gasoline. What was the cost per mile?

A. $0.58

B. $0.64

C. $0.91

D. $0.97

Richard Darman offered $112,500 for a home that had been priced at $125,000. The seller agreed to the offer. A bank is willing to finance the purchase if he can make a down payment of ¼ of the selling price. What is the amount of his mortgage loan?

A. $28,125

B. $31,250

C. $84,375

D. $93,750

Gina and Tony Jasinski received a tax statement showing that their land has an assessed value of $7,500 and their buildings have an assessed value of $42,300. The rate of assessment in their locality is 40 percent. What is the market value of their property?

A. $19M920

B. $49,800

C. $83,000

D. $124,500

Melvin Hayashi recorded his housing expenses for the month of December: $548.36 for mortgage payment, $29.50 for insurance premium, $122.50 for real estate taxes, $46.75 for refrigerator installment payment, $104.70 for electricity, $34.40 for telephone service, $86.70 for home heating oil, and $21.80 for water. His monthly take-home pay is $2,500.00. What is his total monthly housing cost?

A. $446.35

B. $994.71

C. $1,505.29

D. $3,494.71

Rachel and Dustin Lutts are self-employed photographers. They pay 100 percent of the PPO insurance premium of $7,640 annually. They also have a dental plan that costs $566 annually and a vision plan that costs $244 annually. The premiums are paid quarterly. How much do they pay each quarter?

A. $2,112.50

B. $2,816.67

C. $4,225.00

D. $8,450.00

Duane Hartley owns 2,000 shares of Heban Oil stock, which he purchased for $28.40 each. Recently he read that the average selling price of his stock was $37.90. The company paid annual dividends of $1.80 per share last year. What is the annual yield on his stock?

A. 4.74%

B. 6.34%

C. 6.40%

D. 18.9%

Tony Sanchez owned 180 shares of an architecture company’s stock, for which he paid $13.50 per share plus a 2 percent commission on the principal. He sold at $31.50 and paid a 3 percent sales commission on the principal. What was the profit from the sale?

A. $2,478.60

B. $3,021.30

C. $3,240.00

D. $5,499.90

Sandy and Moray Doran purchased a $50,000 bond at a quoted price of 94 3/8. The bond pays annual interest at a rate of 3 percent. What is the annual yield?

A. 2.8%

B. 3%

C. 3.18%

D. 6.3%

The cellular communications department hired Marilyn Curtis as its new national distribution manager at an annual salary of $154,950. The following costs were incurred: advertising costs--$2,247.50, interviewing expenses--$647.43 for Marilyn Curtis and $816.94 for Tom Hart, finder agency fee—20 percent of first year’s salary. What was the total cost of hiring the national distribution manager?

A. $30,711.87

B. $30,990.00

C. $33,884.93

D. $34,701.87

Malik Brooks works 40 hours a week 52 weeks per year for Metro Delivery Company. He earns $9.15 an hour. If he received a 4.9 percent merit increase, what will be his new annual gross pay?

A. $19,032.00

B. $19,964.56

C. $19,964.57

D. $19,968.00

Phil Fetzenrider spent 3 days in Fargo, North Dakota, doing computer training as a consultant. His airfare was $548.52 and he rented a car for 3 days at $39.95 a day, plus $9.56 for gasoline. His hotel was $139.95 a night for 2 nights. His meals were $35.32 the first day, $45.68 the second day, and $17.44 the third day. Find the total travel expenses.

A. $836.42

B. $916.32

C. $1,056.27

D. $1,065.27

Forestry Consultants brought in Tom Collins, an expert on pruning trees, to train 8 summer employees. Collins charged a fee of $350.00 for a hands-on, 8 hour training session. The summer employees are paid $10.50 an hour. Lunch is $6.50 per person. Each trainee is furnished with a pruning saw that sells for $56.25 each. What is the total cost of the training?

A. $884.00

B. $1,174.00

C. $1,524.00

D. $1,530.50

The Donnelly Manufacturing Company manufactures plastic tablecloths. Each roll of printed plastic yields 120 tablecloths. Each roll costs $21.70. The direct labor charge is $19.20 per hour. The machine operator can cut and fold 90 tablecloths per hour. What is the prime cost of manufacturing each tablecloth?

A. $0.18

B. $0.34

C. $0.394

D. $0.42

Superior Custom Homes builds a limited number of custom homes. The fixed costs of the operation total $2,157,750. The base selling price per custom home is $479,500. The base variable cost per custom home is $431,550. What is the break-even point in number of custom homes?

A. 19

B. 36

C. 39

D. 45

Alice McHenry is a quality control inspector for Nu-Age DVDs. The process is in control if 6 percent or less of each sample is defective. McHenry checked a sample of 50 DVDs and found 4 defective DVDs. What percent of the sample is defective?

A. 2%

B. 3%

C. 8%

D. 8.7%

Owen Acker’s assembly line task is to weld a bracket on support beams for manufactured homes. He works 8.5 hours a day with a 15-minute break at 10 am, a 30-minute lunch break at noon, and a 20-minute break at 3 pm. It takes him 12 minutes to weld each bracket. How many brackets a day should he be expected to weld?

A. 37

B. 42

C. 43

D. 47

A furnace gas regulator carries a catalog price of $139.75. Its competitor offers a 30 percent trade-discount rate. What is the net price?

A. $41.93

B. $97.83

C. $98.73

D. $181.68

Eagle Parts offers a chain discount of 35/20 on a discontinued part. The list price is $235.89. What is the net price of the part?

A. $113.23

B. $122.66

C. $153.33

D. $188.71

A document that lists the quantities and costs of the items purchased is called a(n)

A. invoice

B. purchase order

C. inventory

D. sales order

Net price for hardware is $6,715.80. Terms are 4/10, n/30. The date of invoice is October 7. Date paid is October 14. What is the cash price?

A. $6,044.22

B. $6,312.85

C. $6,447.17

D. $6,715.80

An invoice from Krio Foods Corporation to Barr Wholesalers carries a net price of $26,715.81. The terms are 7/10 EOM. The invoice is dated February 28. The invoice is paid April 7. What is the last day to take the discount?

A. February 28

B. March 31

C. April 10

D. April 30

The _____ is the amount of a discount on an item expressed as a percent.

A. annual percentage rate

B. interest rate

C. net-price rate

D. trade-discount rate

Theresa Oakley operates a mini-engine repair shop. Recently she bought an older lawn mower for $20.00 at a local auction. She repaired the lawn mower at a cost of $9.17 in parts. She painted and polished the lawn mower at a cost of $6.43. When the lawn mower was finished, Oakley sold it for $75.00. What was the markup on the lawn mower?

A. $39.40

B. $55.00

C. $57.74

D. $70.60

Office Mate buys an electronic organizer with a full-color display for $247.68. It sells for $399.99. What is the markup rate based on the selling price?

A. 38.1%

B. 38.5%

C. 61.5%

D. 61.9%

Custom Comp, assemblers of customized professional central processing units, delivered a system to Universal Delivery for a selling price of $1,078,450. The cost of the unit to Custom Comp was $416,785. The system design, programming, installation, and other overhead expenses were estimated to be 38.5 percent of the selling price. What net profit did Custom Comp make on the sale?

A. $246,461.75

B. $246,461.80

C. $415,203.25

D. $501,202.80

The Savas Shop purchases steel bars for $9.85 per bar. An automatic machine cuts and forms each bar into 30 steel pins. The 30 pins are packaged individually and marked to sell at $0.79 each. Overhead expenses are estimated to be 12.5 percent of the selling price per pin. What is the net-profit rate per pin?

A. 45.6%

B. 45.9%

C. 51.2%

D. 53.3%

Paperback Paupers marks up paperback books 35 percent of the selling price. A paperback book costs Paupers $4.52. What is the selling price of the book?

A. 5.88

B. $6.95

C. $7.46

D. $9.04

Craig Nielson works at his parent’s outdoor market. He sells tomatoes for $1.99 a pound. The tomatoes cost $0.89 a pound. What is the markup rate based on cost?

A. 44.7%

B. 55.3%

C. 100%

D. 123.6%

The Glass Company manufactures stemware. The cost per gross (144 items) is $66.24. The stemware is sold at a markup of 115 percent based on cost. What is the selling price for a single piece of stemware?

A. $.46

B. $.99

C. $1.19

D. $1.25

At Food Safe a dozen eggs can be purchased for $0.59 with a coupon, $0.79 without. What is the markdown rate if the coupon is used?

A. 25.3%

B. 33.9%

C. 66.1%

D. 74.7%

The discount expressed as a percent of the regular selling price of a product is called the _________.

A. markdown rate

B. markup rate

C. net-profit rate

D. rate of decrease

The National Optometrists Company is marketing a new, softer, more pliable disposable contact lens. Out of a sample of 1,200 users, 150 preferred the new lenses. The estimated total market of disposal contact lens users is 1,500,000. The average disposable contact lens wearer would purchase 12 lenses per year. What is the sales potential for the new lenses for 1 year?

A. 15,625

B. 187,500

C. 1,440,000

D. 2,25000

Mountainside’s local landscaping business totaled approximately $789,400 in sales for the year. The landscaping business for the area totaled about $1,340,000 for the year. What market share did Mountainside have?

A. 30.3%

B. 41.1%

C. 58.9%

D. 69.7%

This year enrollment at Silverado Central University (SCU) accounted for 55 percent of all university students in the greater metropolitan area. Next year the total university enrollment in the greater metropolitan area is expected to be about 34,000 students. What enrollment figures can SCU project for next year?

A. 15,300

B. 18,700

C. 52,700

D. 68,000

Pacific New Car Sales is interested in sponsoring the sports coverage on the local television station. The rate per 30-second commercial is $1,475. Commercials less than 30 seconds are 50% of 30-second rate. Pacific New Car Sales has contracted for ten 30-second advertisements, five 10-second advertisements, and five 60-second advertisements. What is the total cost for these advertisements?

A. $29,500.00

B. $31,958.33

C. $33,187.50

D. $36,875.00

Bananas are delivered to grocery stores in crates measuring 1 yard by 1.5 feet x 12 inches. How many cubic feet of storage space are required for 25 creates of bananas?

A. 28.75 cubic feet

B. 112.5 cubic feet

C. 150 cubic feet

D. 450 cubic feet

On January 2 Sport Wholesalers started with an inventory of 175 soccer balls. Shipments of 45, 76, and 25 were sent out on January 13, February 18, and March 11, respectively. Receipts of 36, 144, and 72 were received on January 20, February 25, and March 15, respectively. Find the balance as of March 15.

A. 69

B. 281

C. 501

D. 573

Iron and Steel carries a $564,800 inventory. The company estimates the annual cost of carrying the inventory at 27 percent of the value of the inventory. What is the approximate annual cost of carrying the inventory?

A. $147,636

B. $152,496

C. $153,468

D. $412,304

The number of each item that a company has in stock is called ________.

A. first in, first out

B. inventory

C. last in, first out

D. warehouse supplies

The Luncheonette rents a 30-foot by 50-foot area at the Nottingham Mall. The Luncheonette pays $9.20 per square foot per year plus 2 percent of gross sales. Last year The Luncheonette had $225,000 in gross sales. What was its monthly rent?

A. $390.33

B. $1,525.00

C. $4684.00

D. $18,300.00

Scott’s Supermarket hired 5 people to refinish its floor. The regular hourly rate for each person was $7.25. Because the floor was refinished on Sunday, each worker was paid double time. The job took 5 hours to complete. The materials charge was $571.85. What was the total charge?

A. $362.50

B. $644.35

C. $753.10

D. $934.35

Direct Pro rents video conferencing equipment for five months. The rental charge is 12 percent of the list price. There is a 7.75 percent use tax. What is the total rental cost if the list price of the equipment is $10,750?

A. $1,389.98

B. $1,740.00

C. $6,450.00

D. $6,949.88

The Pantry Supermarket used 21,400 kilowatt hours of electricity last month. The peak load for the month was 120 kilowatts. The demand charge is $5.91 per kilowatt. The energy charge per kilowatt hour is $0.0675 for the first 10,000 kilowatt hours and $0.0455 per kilowatt hour for more than 10,000 kilowatt hours. The fuel adjustment charge is $0.015 per kilowatt hour. What is the total cost of electricity for Pantry Supermarket for last month?

A. $1,514.70

B. $1,581.90

C. $1,902.90

D. $2,223.90

Super Food Mart has installed automated checkout equipment in its six stores. It hired Robert Case to consult on its installation. Case charged 6 percent of the installation cost. It also hired Marilyn Lee to instruct its employees on the use of the equipment. Lee conducted six 4-hour sessions at $125 per session. The cost of the installation totaled $68,970. What was the total cost for professional services?

A. $4,638.20

B. $4,888.20

C. $73,608.20

D. $73,858.20

Find the net pay if gross pay is $343.06. Federal income tax is $22. State income tax is $5.15. Social Security Tax is 6.2 percent. Medicare Tax is 1.45 percent and Health insurance is $30.75.

A. $258.92

B. $289.67

C. $311.50

D. $427.20

Trapper Financial Consultants expenses total $72,650 for the quarter. Payroll for the quarter is $48,435. What percent of the total is the payroll expense?

A. 33.3%

B. 50%

C. 66.7%

D. 150%

A form that shows a company’s assets, liabilities, and owner’s equity is called a(n) ____.

A. balance sheet

B. income statement

C. owner’s equity statement

D. work sheet

Candies & More occupies 50 feet by 78 feet in a mall with 45,000 square feet. The monthly security expenses are $18,500. The mall apportions this cost based on the square footage of its stores. What does Candies & More pay for security?

A. $526.20

B. $1,052.40

C. $1,603.33

D. $2,220.00

Third National Bank rece3ntly purchased 6 new laptop computers. Each computer cost $2,245. The estimated life of each computer is 5 years. The trade-in value of each computer is expected to be $125 at the end of the 5 years. What is the annual depreciation for each computer?

A. $424

B. $474

C. $2,544

D. $2,844

Family Pharmacy has these assets and liabilities. Cash: $4,187, Inventory: $17,450, Equipment: $36,475, Supplies: $7,185, Building: $125,000, Land: $31,500, Unpaid merchandise: $11,410, Taxes owed: $847, Real estate loan: $130,000. What is the owner’s equity?

A. $79,540

B. $102,360

C. $142,257

D. $221,797

Leather Limited started the month with an inventory valued at $18,719.45. During the month, it received 9 men’s jackets at $47.53 each, 15 belts at $2,79 each, 4 ladies’ long coats at $84.37 each, 5 men’s hats at $8.71 each, and 5 ladies jackets at $38.84 each. The month-end inventory was valued at $16,478.54. Find the cost of goods sold.

A. $1,196.06

B. $2,423.15

C. $3,285.76

D. $9,166.03

Advantage Housekeeping Service prepares a monthly income statement. For this past month, it collected $3,150 from homeowners for services provided (sales). It had $70 in allowances for jobs that had to be redone. Salaries and wages totaled $1,800, supplies cost $315 and other operating expenses totaled $94. What is the net income?

A. $871

B. $2,279

C. $3,150

D. $5,429

What is the current ratio for a business that has total assets of $135,338 and total liabilities of $91,067?

A. 1.5:1

B. 3.3:1

C. 4.9:1

D. 6.7:1

Last year, the net sales for Holiday Express were $140,270. This year the net sales are $138,395. What is the percent of change?

A. 1.3%

B. 1.4%

C. 1.9%

D. 10.1%

Universal Waste Disposal sold 1,350,000 shares of stock at $24l.625 per share. The investment banker’s commission was 5 percent of the value of the stock. The other expenses were 1 percent of the value of the stock. What net proceeds did Universal Waste Disposal receive?

A. $31,249,125

B. $31,581,563

C. $31,914,000

D. $34,573,500

The Gibraltar Construction Manufacturing Company was granted a 1-year construction loan of $650,000 to finance the construction of an apartment complex. Gibraltar borrowed the money from Citizens Trust Company at an interest rate of 0.75 percent ordinary interest over prime. What was the maturity value of the loan if the prime rate is 9.75 percent?

A. $68,250

B. $654,875

C. $713,375

D. $718,250

Central National Bank plans to open a new branch office. Central purchased property for $134,500. Construction costs for a new building totaled $875,980. In addition, Central paid an architect’s fee of 7.5 percent of the cost of construction. Legal fees for the expansion totaled $6,000. New equipment and fixtures cost $124,675. Other expenses came to $7,215. What was the total cost of the expansion?

A. $1,079,568.50

B. $1,082,671.50

C. $1,148,370.00

D. $1,214,068.50

At the grand opening of the Bayview Market in 1938, a 10-ounce box of cereal cost $0.10. Today the box costs $2.99. What is the inflation rate for cereal over the time period?

A. 96.7%

B. 2890%

C. 2980%

D. 2990%

Assume that your present job pays a monthly gross salary of $1,560. You are offered a new position that pays $8.60 per hour with 1 ½ times more per hour for all hours over 40 per week. How many hours of overtime per week would you need to work to earn the same amount per week as your present job?

A. 1.24 hours

B. 1.41 hours

C. 3.02 hours

D. 3.57 hours

ANSWER KEY

|1. |A |26. |C |51. |C |76. |C |

|2. |C |27. |A |52. |C |77. |B |

|3. |D |28. |D |53. |D |78. |B |

|4. |D |29. |B |54. |C |79. |B |

|5. |B |30. |C |55. |D |80. |B |

|6. |C |31. |B |56. |C |81. |B |

|7. |C |32. |B |57. |A |82. |D |

|8. |D |33. |C |58. |B |83. |D |

|9. |A |34. |A |59. |B |84. |D |

|10. |B |35. |C |60. |A |85. |B |

|11. |B |36. |B |61. |C |86. |A |

|12. |B |37. |D |62. |C |87. |C |

|13. |A |38. |C |63. |D |88. |A |

|14. |C |39. |D |64. |A |89. |C |

|15. |B |40. |B |65. |A |90. |A |

|16. |B |41. |C |66. |A |91. |A |

|17. |A |42. |D |67. |B |92. |C |

|18. |D |43. |C |68. |B |93. |A |

|19. |C |44. |D |69. |D |94. |A |

|20. |C |45. |B |70. |B |95. |A |

|21. |D |46. |A |71. |A |96. |A |

|22. |A |47. |B |72. |A |97. |D |

|23. |C |48. |B |73. |D |98. |D |

|24. |B |49. |C |74. |C |99. |B |

|25. |D |50. |D |75. |B |100. |A |

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