Mathematics of Business and Finance

1.Last year, a battery manufacturing company in Toronto incurred a loss of$659,000.00 by producing and selling 45,000 batteries. If their total revenue for the
year was $15,000,000.00 and the break-even volume of the plant is 61,500
batteries, calculate:
a. The selling price of each battery
Round to the nearest cent
b. The variable costs for each battery
Round to the nearest cent
2. It costs a manufacturer $3,410 to make a product. The rate of markup is 30.00%
of the selling price and it offers a markdown of 11.00% during a discount period.
a. What is the regular selling price?
Round to the nearest cent
b. What is the reduced selling price during the discount period?
Round to the nearest cent
3. A company that manufactures electronic items sells them for $125 each. They
need to sell 630 items per month to break even. If the fixed costs are $24,500 per
month, what are the variable costs per item?
Round to the nearest cent
4. If £1 = US$1.11375 and A$1 = US$0.8896, how many British pounds will you get
for one Australian dollar?
£
Round to two decimal places
5. Maroon Company received an invoice for $151,750 dated November 4, 2011
with payment terms 6/3, 3/20, n/45 for a truck-load of goods. Calculate the amount
required to settle the invoice on the following dates.
a. November 6, 2011
Round to the nearest cent
b. November 24, 2011
Round to the nearest cent
c. December 19, 2011
Round to the nearest cent
6. A distributor purchases industrial fans for $155 each. Its profit is 10.00% on
selling price and markup is 30.00% on selling price. During a trade show, if the
distributor offers a markdown of 8.00% on its fans, calculate the reduced profit or
loss made per fan.
Round to the nearest cent. Express a loss as a negative
7. Tumble Company sells a digital camera for $1,250.00 less 28.00%. Another
wholesaler, Spring Company sells a similar digital camera for $830.00 less 24.00%.
a. What is the difference in the price offered by these two distributors?
Round to the nearest cent
b. What further trade discount rate should the more expensive wholesaler offer to
match the other wholesaler’s price?
%
Round to two decimal places
8. The rate of markup on cost on a product selling at $66.57 is 44%.
a. What is the cost of the product to the retailer?
Round to the nearest cent
b. What is the rate of markup on selling price?
%
Round to two decimal places