Topic Test Answers

Last year, Rusty’s Tools experienced $67,550 in net sales, creating a gross profit of $50,338. If Rusty had a total operating expense of $35,200 last year, what was his net profit margin?

Korey is planning to open a comic book store near his home. After completing a population survey for 3,520 homes in a 5 mile radius, Korey created the chart below to include in the market analysis section of his business plan. Korey expects 75% of his business to come from kids in high school and grade school. About how many of homes surveyed fit into one of these two categories?

Korey is planning to open a comic book store near his home. After completing a population survey for 3,520 homes in a 5 mile radius, Korey created the chart below to include in the market analysis section of his business plan. Korey expects 75% of his business to come from kids in high school and grade school. About how many of homes surveyed fit into one of these two categories?

Last year, Rusty’s Tools experienced $67,550 in net sales, creating a gross profit of $50,338. If Rusty had a total operating expense of $35,200 last year, what was his net profit margin?

Sam is planning to start a pool cleaning business from his home. He has developed the following cost analysis for the set-up and operation for the first year of his business. He has $9,000 in savings and $23,000 in credit that he can use for the business. Approximately what percent of the initial set-up and operation costs will Sam need to finance with a lender or investor?ItemCostTruck$9,000Pool Cleaning Supplies$6,000Payroll$23,000Advertising$1,500

Business Year

Sam has been running his swimming pool cleaning business now for five years. He is considering enlarging his service area to a 100 mile radius, which would require two new offices in different parts of town. He would like to take out a business loan to cover the cost of expansion.The profits for Sam's business over the last 5 years are outlined in the table below. According to this information, what would be the best estimate for Sam to quote as expected profits in the next year in his new business plan?Business YearNet Profit1$43,502.252$47,417.453$51,685.024$56,336.685$61,406.98

Calvin works at a facility which processes apples. It costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. Due to the nature of the process and contractual agreements, Calvin’s facility must make and sell three jars of applesauce for every two bottles of apple juice. A jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. If the facility has annual overhead costs of $368,500, not including production costs, how many bottles of apple juice will the facility have sold when it breaks even every year? Round to the nearest whole bottle, if necessary.

Which of the following expenses is not a fixed cost?

The following graph represents the cost and revenue functions for custom-made computers. How many computers have been sold at the break-even point?

Korey is planning to open a comic book store. Although there are two other comic book stores within 20 miles, he believes he will be able to outperform them with a greater selection of merchandise, gaming competitions, and artist and author signings. In Korey's business plan, this information should be included in the _____ component.

Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an annual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years. This is all information Sam should include in the _____ component of his business plan.

Greg purchased supplies for a party. He had a coupon good for 30% off. He purchased a helium tank rental with an original price of $31.61, a sheet cake with an original price of $18.44, a punch bowl with an original price of $12.78, and paper decorations with an original price of $23.69. Greg’s total came to $80.99. To which item did Greg apply his coupon?