Topic Test Answers

Korey is planning to open a comic book store. His store will cost $12,500 to open and will come with a $8,000 total annual operational cost. If his store makes $12,000 in profit during the first year, and profits increase by 6% each year from then, how long will it take for Korey to see an overall profit in his business (where total profits exceed total expenses)? a. Korey will see an overall profit in his first year of business. b. Korey will see an overall profit i

A sporting goods store is having a large sale event. Baseball bats are marked down by 42%, and hockey sticks are marked down by 29%. If baseball bats cost $21.46 after the markdown and hockey sticks cost $39.05 after the markdown, which item’s price was reduced by more, and by how many more dollars was it reduced? Round all dollar values to the nearest cent.a.Hockey sticks had their prices reduced by $2.31 more than baseball bats.b.Hockey sticks had their prices reduced by $0.41 more than baseba

Korey?s Comics

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Salesperson

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Which of the following equations correctly describes how to calculate gross profit?a.gross profit = (net sales) - (cost of goods sold)b.gross profit = (cost of goods sold) - (net sales)c.gross profit = (net income) - (operating expenses)d.gross profit = (operating expenses) - (net income)

An optical mouse originally cost $31.85. Before it was removed from the store, it underwent the following changes in price.27%Markup22%Markup25%Markdown39%Markup16%MarkdownWhat is the final price of the optical mouse? Round all dollar values to the nearest cent.a.$46.82b.$43.21c.$35.33d.$26.75

Korey is planning to open a comic book store. He has developed the following expense breakdown for set-up and operation for the first year. Korey has $8,500 in savings and $25,000 in inheritance money to use to open his store. Will Korey have enough to run his business for a full year? ExpenseAmountRent$10,800Insurance$3,000Store Fixtures$2,700Computer and Cash Register$1,200Inventory$17,400a.Yes, Korey will have $1,600 to spare.b.No, Korey will be short $1,600.c.Yes, Korey will have $15,800 to spare.d.No, Korey will be short $15,800.

A microwave oven costs $124.85 before it is marked down. If it is marked down by 63%, what is its new price, to the nearest cent?a.$78.66b.$61.85c.$58.68d.$46.19

At his comic book store, Korey's Comics, Korey sells approximately $3,250 in comic books each month. But as a comic book dealer, Korey only pays $1,285 for these comic books. Korey's monthly operating expenses, including labor, are $875. Calculate Korey's monthly gross profit.a.$1,090b.$1,965c.$2,375d.$2,840

Sam is planning to start a pool cleaning business from his home. He has decided on a radius of 30 miles from his home as a region of operation. After surveying the region of operation, he has found that 43% of homes in the region have a swimming pool. There are 36,248 homes in Sam’s region of operation.Which of the following statements is the best reason to include in the market analysis component of Sam’s business plan explaining why such a high percentage is good for Sam’s business?a.43% is 40% more than Sam needs.b.Only 57% of the home owners need to build a swimming pool.c.43% of homes with a pool means 15,586 guaranteed customers, creating a solid customer base.d.Since pools are not often removed from a property, 43% of homes with a pool means a strong potential customer base now, with the existing home owners, and later, with new home owners.

A plant nursery is having a sale. Potted begonias are marked down 27%, and tomato seedlings are marked down 35%. If you pay $6.57 each for two potted begonias and $2.60 each for three tomato seedlings, how much did you save?a.$3.83b.$5.31c.$6.92d.$9.06

A chicken farmer can produce one crate of eggs at a cost of $9.86, and can sell that crate for $34.24. If the farmer has a starting overhead cost of $7,312, not including production costs, how many crates must be sold in order to realize a profit of $11,300, to the nearest crate?a.164b.330c.463d.763

Last month, Korey’s Comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. Calculate Korey’s net profit margin.a.42.5%b.55.7%c.76.3%d.179.5%