Break-Even Analysis — Unit 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

Korey?s Comics

Item

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

I.

Salesperson

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.a.organization planb.financial analysisc.executive summaryd.implementation plan

Last month, Korey’s Comics had a gross profit of $2,385 with a monthly revenue of $3,465. Korey expects similar sales this month, but he would like to build up his in-store browsing selection, and purchases an additional assortment of comic books that costs him $625. The new assortment of comics will not arrive until next month. How does this transaction affect Korey’s gross profit for this month?a.This transaction will decrease Korey’s gross monthly profit by $625.b.This transaction will increase Korey’s gross monthly profit by $625.c.This transaction will decrease Korey’s gross monthly profit by $1,760.d.This transaction will increase Korey’s gross monthly profit by $1,760.

Sam's Swimming Pool Cleaning has a annual net income of $46,900. Sam charges $25 per week for each of his customers for 52 weeks. His annual operating expenses, including labor and supplies, are $48,000. How many customers does Sam's Swimming Pool Cleaning have?a.21b.38c.44d.73

A roast chicken with a base price of $6.89 is marked up by 21%. What is the new price, to the nearest cent?a.$12.33b.$9.97c.$8.34d.$7.10

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.a.market analysisb.organizational planc.executive summaryd.implementation plan

The following graph represents the cost and revenue functions for custom-made computers. How many computers have been sold at the break-even point? a. 12 b. 9 c. 5 d. 0 Please select the best answer from the choices provided

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)

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? a.22.4%b.52.1%c.74.5%d.79.0%

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